GE Aerospace Raises 2024 Profit Forecast On Strong Demand

GE Aerospace has raised its full-year profit forecast for the third time this year, driven by strong demand for aftermarket services from airlines relying on older planes to address the shortage of new aircraft, Reuters reported.

GE Aerospace now expects an adjusted profit of $4.20 to $4.35 per share for 2024, compared to its previous forecast of $3.95 to $4.20 per share. I Photo: GE Aerospace

Production issues at Boeing and Airbus have delayed deliveries of new planes, troubling the airline industry, which is experiencing unprecedented demand for air travel. This has forced airlines to keep older jets in operation, driving up maintenance costs and boosting demand for spare parts and services provided by GE Aerospace.

The company now expects an adjusted profit of $4.20 to $4.35 per share for 2024, compared to its previous forecast of $3.95 to $4.20 per share.

"We grew earnings 25% and produced substantial free cash flow, both largely driven by services," GE Aerospace CEO Larry Culp said.

The company’s joint venture with France’s Safran, CFM, supplies engines for Boeing's 737 MAX and competes with RTX's Pratt & Whitney to power Airbus A320neo jets. GE's commercial engines and services segment saw a 16% rise in profit to $1.8 billion on revenue of $7 billion, an 8% increase from the previous year.