Curtiss-Wright Congratulates Korea Aerospace Industries on the Successful First Flight of the KF-21
As airlines were forced to fly older planes due to a lack of new planes, GE Aerospace increased its yearly profit prediction on Tuesday due to high demand for its aftermarket services, which include jet-engine parts.
Premarket trading saw a 2.5% increase in the company’s share price.
Airline companies are rushing to increase capacity due to a lack of aircraft, which means they are flying older planes and spending more on maintenance.
The premium-priced replacement parts and services offered by GE Aerospace should see an increase in sales as a result. The sales of parts and services account for almost 70% of their revenue from commercial engines.
After previously predicting an adjusted profit of $3.80 to $4.05., the firm now anticipates a range of $3.95 to $4.20 per share.
“We are accelerating our actions and leveraging Flight Deck to unlock supply constraints and fully meet customer demand,” said GE Aerospace CEO Larry Culp on Tuesday.
Along with its joint venture with France’s Safran SA, the aerospace maker also holds a commanding position in the jet-engine sector through CFM International.
For their 737 MAX aircraft, Boeing relies on CFM engines, and Airbus uses CFM engines in opposition to RTX-owned Pratt & Whitney.
Manufacturers of engines often offer discounted engines to airlines, with the intention of recouping some of the cost through the sale of maintenance and repair parts.
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