GE Aerospace GE-N on Tuesday raised its 2026 profit forecast for the second time this year, betting strong demand for engine maintenance and spare parts will offset the impact of higher fuel costs on flights.
Airlines worldwide are cutting costs and capacity to defend ticket prices after the war in Iran disrupted oil shipping routes, driving up jet fuel costs and adding to pressure on the industry.
With no end to the war in sight, higher fuel prices are testing airlines’ ability to maintain schedules and margins, raising the risk of fewer flights and weaker demand for maintenance.
GE Aerospace has said, however, that any impact on services revenue and profit this year should be limited, as much of its 2026 engine shop-visit work is already under contract and demand for spare parts continues to outstrip supply.
Last month, GE Aerospace finance chief Rahul Ghai said the company had seen no changes to airlines’ fleet plans, while the number of parked aircraft remained low.
The jet-engine maker now expects 2026 adjusted earnings of US$8.00 to US$8.10 per share, up from its prior forecast of US$7.65 to US$7.85, and above analysts’ consensus estimate of US$7.92, according to data compiled by LSEG.
“We are raising our 2026 guidance across the board, and we now expect 2027 commercial services to grow low-double-digits supported by our over $170 billion commercial services backlog,” CEO Larry Culp said in a statement.
Through CFM International, its joint venture with France’s Safran, GE Aerospace is a leading supplier of engines for narrow-body jets and a major player in the wide-body market. Parts and services account for more than 70 per cent of its commercial engine revenue.
Quarterly revenue at its commercial engines and services unit climbed 21 per cent to US$10.34-billion, driven by strong demand for aftermarket services. The company also raised its 2026 revenue growth forecast for the segment to the low 20-per-cent range, compared with its previous expectation of about 20-per-cent growth.
It reported an adjusted profit of US$2.25 per share for the quarter through September, beating Wall Street expectations of US$2.01.
Shares of the company rose nearly 1.2 per cent in premarket trading.
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