GE Aerospace sees no airline pullback in engine maintenance despite fuel spike
By Rajesh Kumar Singh
GE Aerospace Maintains Strong Aftermarket Business Amid Fuel Price Surge
CHICAGO, May 27 (Reuters) - GE Aerospace has not seen airlines pull back on engine maintenance or parts orders despite higher fuel prices and softer flight departures, CEO Larry Culp said on Wednesday, signaling continued strength in the aircraft engine maker's high-margin aftermarket business.
CEO Larry Culp's Insights at Bernstein Investor Conference
Speaking at a Bernstein investor conference, Culp said departures had softened over the past eight weeks, with growth now "relatively flat." But he said GE Aerospace had seen no operational impact or change in commercial behavior from airline customers.
Positive Outlook for Second Quarter
"We feel very good about the second quarter," Culp said, citing continued strength in spare-parts orders, engine removals and shop-visit activity.
Impact of Fuel Prices and Global Events on GE Aerospace
The comments suggest GE Aerospace's engine services business is holding up even as the Iran war-driven fuel spike slows flight growth and pressures airline margins.
Profit Outlook and Market Uncertainties
The engine maker said last month it remained on track to hit the high end of its 2026 profit outlook, while warning that elevated oil prices, fuel supply constraints and slower global growth had made the backdrop more uncertain.
2026 Profit Forecast and Assumptions
The company has forecast adjusted profit of $7.10 to $7.40 per share for 2026. In April, the company said its outlook assumed Brent crude prices would remain elevated through the third quarter before easing by year-end, along with near-term constraints on fuel availability.
Aircraft Departures and Services Revenue
Aircraft departures are a key driver of its services business, as more flying increases engine wear and maintenance needs. But GE Aerospace has said the impact on services revenue and profit this year should be limited because much of its 2026 maintenance workload is already locked in and demand for spare parts continues to outstrip supply.
Reporting Credits
(Reporting by Rajesh Kumar Singh, Editing by Nick Zieminski)
