GE Aerospace has raised its 2024 profit forecast for the third time this year, fueled by high demand for aftermarket services as airlines continue to rely on older planes. The company now expects an adjusted profit of $4.20 to $4.35 per share, up from its previous forecast of $3.95 to $4.20 per share. This surge in demand is driven by production delays at Boeing and Airbus, forcing airlines to keep aging jets in operation, which has increased the need for maintenance and spare parts.
GE Aerospace’s commercial engines and services segment saw profits jump 16% to $1.8 billion on revenue of $7 billion for the quarter. CEO Larry Culp attributed the company’s strong performance to a 25% growth in earnings and substantial free cash flow, largely driven by aftermarket services. Despite supply chain challenges, GE Aerospace made significant progress, improving engine deliveries by over 20% sequentially.
As airlines face unprecedented demand for air travel, the reliance on older jets has created new opportunities for GE Aerospace, positioning the company for continued growth into 2024. Investors and industry experts will be closely monitoring future developments as the company navigates supply chain constraints and aims to meet growing demand.
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