Exhibit 99.1

NEWS

For immediate release

Contact:	Richard J. Poulton
	Vice President, Chief Financial Officer
	(630) 227-2075
	E-mail address: rpoulton@aarcorp.com

AAR REPORTS FOURTH QUARTER AND FISCAL YEAR 2010 RESULTS

· Fourth quarter sales of $372 million and diluted earnings per share of $0.29

· Fourth quarter cash flow from operations of $59 million; fiscal year 2010 cash flow from operations of $153 million

· Acquisition of Aviation Worldwide Services (AWS) closed; integration efforts on track

WOOD DALE, ILLINOIS (July 13, 2010) — AAR (NYSE: AIR) today reported fiscal year 2010 fourth quarter consolidated sales of $372.3 million and net income attributable to AAR of $11.2 million, or $0.29 diluted earnings per share. For the fourth quarter of last fiscal year, the Company reported sales of $371.7 million and net income attributable to AAR of $14.2 million, or $0.36 diluted earnings per share.

Consolidated gross profit margin was 17.9% for the fourth quarter compared to 16.4% last year. Selling, general and administrative costs increased $7.2 million, to $42.8 million. The increase was primarily attributable to the acquisition of AWS, including $1.1 million of acquisition related expenses. During the fourth quarter of 2010, the Company generated $59 million of cash flow from operations.

In the fourth quarter of fiscal year 2010, the Company formed the Government and Defense Services segment. This new segment includes the results of AWS, Defense Systems and Logistics (previously reported in the Aviation Supply Chain segment) and Integrated Technologies (formerly known as AAR Brown International and previously reported in the Structures and Systems segment). Prior year information has been revised to conform to the new segment presentation.

One AAR Place · 1100 N. Wood Dale Road · Wood Dale, Illinois 60191 USA · 1-630-227-2000 Fax 1-630-227-2101

Following are the fourth quarter highlights for each segment:

Aviation Supply Chain — Sales declined 9% to $103.3 million and gross profit decreased 6% to $17.1 million compared to last year’s fourth quarter, resulting in a gross profit margin of 16.6%. The year-over-year sales decline was primarily due to lower engine parts sales to commercial customers. Sequentially, sales increased 14.9% over the third quarter primarily due to increased demand for airframe parts support.

Government and Defense Services — Sales increased 82% to $80.5 million and gross profit increased 83% to $16.9 million over last year’s fourth quarter, resulting in a gross profit margin of 21.0%. The sales increase was driven by revenue from AWS and the KC-10 program, which became operational in February 2010.

The integration of AWS is on track and its operating performance is meeting the Company’s expectations. During June and July 2010, AWS began providing additional airlift support deploying both fixed and rotary-wing aircraft under two separate new awards.

Maintenance, Repair and Overhaul — Sales declined 18% to $79.7 million and gross profit declined 26% to $10.6 million compared to last year’s fourth quarter, resulting in a gross profit margin of 13.3%. During the fourth quarter, the Company performed on several previously announced contract wins, which helped mitigate soft conditions in the MRO market. The Company expects year-over-year sales growth in the MRO segment beginning in the second quarter of fiscal 2011.

Structures and Systems — Sales declined 7% to $108.9 million while gross profit increased 15% to $22.1 million over last year’s fourth quarter, resulting in a gross profit margin of 20.3%. Although the Company experienced a decline in sales at its mobility products business, the year-over-year margin improvement is due principally to a combination of favorable product mix and improved operating efficiencies within that business unit.

Full Year Highlights

For the Company’s fiscal year 2010, sales were $1,352.2 million, a decline of 5% versus the prior year, and net income attributable to AAR was $44.6 million, or $1.16 per diluted share.

Commenting on fiscal year 2010 performance, David P. Storch, Chairman and Chief Executive Officer of AAR CORP. stated, “While the pace of the recovery in the commercial markets was not as brisk as expected, we remained focused on capturing new business, delivering quality and cost effective solutions, maintaining a lean cost structure, and generating cash. I am pleased with our new business wins during the year, including the KC-10 performance-based logistics program valued at $600 million over nine years; contracts providing mobility products valued at $300 million over five years; long-term programs to manufacture composite products for the Bombardier C-series and Sikorsky S-92 platforms, together valued in excess of $100 million; several multi-year airframe maintenance contracts and one engineering services contract, together valued in excess of $125

million; a $45 million Airbus narrow-body landing gear program over five years; and a new Airbus inventory management program for Gulf Air valued at $20 million over three years.”

Storch continued, “During fiscal year 2010, we generated $153 million of cash from operations. Our balance sheet remains strong and we have substantial liquidity to seize additional opportunities in our markets.”

Storch continued, “We are in the integration phase of the AWS acquisition and I am very pleased with our progress to date. Management has been focused on execution and improving the operational and financial performance of the business. We have owned AWS since April 7, 2010, and since closing have successfully won new business and see additional opportunity to provide vital supplemental airlift support to a broader customer base.”

Storch concluded, “The focus of the Company remains squarely on capturing new business, solid execution, cost control, and maintaining a strong balance sheet. For fiscal 2011, we expect to benefit from the investments we have made in support of our defense and government customers and from the recovery in the commercial markets.”

AAR is a leading provider of products and value-added services to the worldwide aerospace and government/defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through four operating segments: Aviation Supply Chain; Government and Defense Services; Maintenance, Repair and Overhaul; and Structures and Systems. More information can be found at www.aarcorp.com.

AAR will hold its quarterly conference call at 7:30 a.m. CDT on July 14, 2010. The conference call can be accessed by calling 866-219-5269 from inside the U.S. or 703-639-1121 from outside the U.S. A replay of the call will be available by calling 888-266-2081 from inside the U.S. or 703-925-2533 from outside the U.S. (access code 1465420) from 10:30 a.m. CDT on July 14, 2010 until 11:59 p.m. CDT on July 21, 2010.

# # #

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled “Risk Factors”, included in the Company’s May 31, 2009 Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR’s filings with the Securities and Exchange Commission.

AAR CORP. and Subsidiaries

Consolidated Statements of Operations	Three Months Ended May 31,						Twelve Months Ended May 31,
(In thousands except per share data)	2010			2009			2010			2009

Sales	$	372,337		$	371,708		$	1,352,151		$	1,423,976
Cost and expenses:
Cost of sales	305,626			300,565			1,108,632			1,151,228
Cost of sales – impairment charges	—			10,100			—			31,133
Selling, general and administrative	42,844			35,637			153,299			147,219

Earnings (loss) from aircraft joint ventures	(38		)	1,283			112			8,496

Operating income	23,829			26,689			90,332			102,892

Gain (loss) on extinguishment of debt	(20		)	3,309			893			14,701

Interest expense	7,288			7,306			26,832			31,416
Interest income	193			295			945			1,465
Gain (loss) on sale of investments	726			(1,393		)	(1,150		)	(1,393		)

Income from continuing operations before income taxes	17,440			21,594			64,188			86,249
Income tax expense	6,374			7,418			20,986			27,528
Income from continuing operations	11,066			14,176			43,202			58,721

Discontinued operations, net of tax	—			—			—			(1,949		)
Net income attributable to AAR and noncontrolling interest	11,066			14,176			43,202			56,772
Loss attributable to noncontrolling interest	134			—			1,426			—
Net income attributable to AAR	$	11,200		$	14,176		$	44,628		$	56,772
Earnings per share - Basic:
Earnings from continuing operations	$	0.29		$	0.37		$	1.17		$	1.54
Loss from discontinued operations	—			—			—			(0.05		)
Earnings per share – Basic	$	0.29		$	0.37		$	1.17		$	1.49

Earnings per share – Diluted:
Earnings from continuing operations	$	0.29		$	0.36		$	1.16		$	1.50
Loss from discontinued operations	—			—			—			(0.05		)
Earnings per share — Diluted	$	0.29		$	0.36		$	1.16		$	1.45

Share Data:

Average shares outstanding – Basic	38,268			38,030			38,182			38,059
Average shares outstanding – Diluted	43,278			42,516			43,091			42,809

Consolidated Balance Sheet Highlights (In thousands except per share data)	May 31, 2010		May 31, 2009

Cash and cash equivalents	$	79,370	$	112,505
Current assets	863,429		851,312
Current liabilities (excluding debt accounts)	224,717		190,818
Net property, plant and equipment	224,866		125,048
Total assets	1,501,042		1,375,905
Total recourse debt	419,733		353,028
Total non-recourse obligations	17,292		38,781
Stockholders’ equity	746,350		696,734
Book value per share	$	18.90	$	17.92
Shares outstanding	39,484		38,884

Sales By Business Segment	Three Months Ended May 31,				Twelve Months Ended May 31,
(In thousands)	2010		2009		2010		2009
Aviation Supply Chain	$	103,268	$	114,053	$	405,955	$	468,085
Government and Defense Services	80,510		44,190		194,944		174,391
Maintenance, Repair & Overhaul	79,669		96,615		301,348		348,810
Structures and Systems	108,890		116,850		449,904		432,690
	$	372,337	$	371,708	$	1,352,151	$	1,423,976

Gross Profit by Business Segment	Three Months Ended May 31,				Twelve Months Ended May 31,
(In thousands)	2010		2009		2010		2009
Aviation Supply Chain	$	17,100	$	18,246	$	70,490	$	84,243
Government and Defense Services	16,944		9,267		42,304		39,507
Maintenance, Repair & Overhaul	10,607		14,373		38,206		51,281
Structures and Systems	22,060		19,157		92,519		66,584
	$	66,711	$	61,043	$	243,519	$	241,615

Diluted Earnings Per Share Calculation	Three Months Ended May 31,				Twelve Months Ended May 31,
(In thousands except per share data)	2010		2009		2010		2009

Net income as reported	$	11,200	$	14,176	$	44,628	$	56,772
Add: After-tax interest on convertible debt	1,349		1,321		5,274		5,428
Net income for diluted EPS calculation	$	12,549	$	15,497	$	49,902	$	62,200

Diluted shares outstanding	43,278		42,516		43,091		42,809

Diluted earnings per share	$	0.29	$	0.36	$	1.16	$	1.45

The following information includes sales and gross profit by segment under the new reporting structure for each quarter in fiscal year 2010 and 2009.

Fiscal Year 2010

Sales by Business Segment	Q1		Q2		Q3		Q4		Full Year

Aviation Supply Chain	$	110,637	$	102,159	$	89,891	$	103,268	$	405,955
Government & Defense Services	36,743		39,329		38,362		80,510		194,944
Maintenance, Repair & Overhaul	79,217		71,805		70,657		79,669		301,348
Structures & Systems	114,926		115,391		110,697		108,890		449,904
	$	341,523	$	328,684	$	309,607	$	372,337	$	1,352,151

Gross Profit by Business Segment	Q1		Q2		Q3		Q4		Full Year

Aviation Supply Chain	$	15,965	$	21,850	$	15,575	$	17,100	$	70,490
Government & Defense Services	7,705		8,450		9,205		16,944		42,304
Maintenance, Repair & Overhaul	10,539		8,577		8,483		10,607		38,206
Structures & Systems	19,814		24,983		25,662		22,060		92,519
	$	54,023	$	63,860	$	58,925	$	66,711	$	243,519

Fiscal Year 2009

Sales by Business Segment	Q1		Q2		Q3		Q4		Full Year

Aviation Supply Chain	$	126,296	$	117,739	$	109,997	$	114,053	$	468,085
Government & Defense Services	43,856		46,822		39,523		44,190		174,391
Maintenance, Repair & Overhaul	86,757		88,101		77,337		96,615		348,810
Structures & Systems	102,995		100,910		111,935		116,850		432,690
	$	359,904	$	353,572	$	338,792	$	371,708	$	1,423,976

Gross Profit by Business Segment	Q1		Q2		Q3		Q4		Full Year

Aviation Supply Chain	$	29,582	$	8,362	$	28,053	$	18,246	$	84,243
Government & Defense Services	9,612		11,129		9,499		9,267		39,507
Maintenance, Repair & Overhaul	12,574		13,486		10,848		14,373		51,281
Structures & Systems	15,370		15,832		16,225		19,157		66,584
	$	67,138	$	48,809	$	64,625	$	61,043	$	241,615