AAR Corp. (NYSE: AIR) announced the U.S. Air Force awarded the company two contracts totaling approximately $450 million for cargo pallet services, according to a company statement.

The first contract, valued at $160 million, covers repair services for the 463L Legacy Cargo Pallet under a sole-source, firm-fixed-price arrangement. Work under this contract is expected to be completed by March 2031.

The second contract, worth $290 million, involves manufacturing and producing 463 legacy air cargo pallets. This work is scheduled for completion by March 2032.

The 463L Pallet serves as the standard pallet for U.S. Air Force cargo transport and is designed for use with dual-rail cargo systems on military transport aircraft. AAR has supplied 463L Pallets to the U.S. Air Force since 1963.

"Government contracts are core to AAR's diversified business model. For decades, AAR has proudly met the pallet needs of the U.S. government, and these additional awards extend our services into 2032," said Tom Hoferer, AAR's Senior Vice President of Repair & Engineering.

Wood Dale, Illinois-based AAR operates as a provider of aviation services to commercial and government operators, maintenance, repair and overhaul companies, and original equipment manufacturers. The company operates in over 20 countries through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.