ReutersLast Updated: Oct 20, 2026, 04:49:00 PM IST

Synopsis

GE Aerospace has increased its 2026 adjusted earnings forecast due to continued demand for engine maintenance. The demand for spare parts remains high, which supports their financial outlook. Airlines are facing rising fuel costs due to disruptions in oil supply and are adjusting their capacity accordingly. Despite potential pressures on flight schedules, GE Aerospace's revenue from services is expected to remain strong.

GE Aerospace 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 $8.00 to $8.10 per share, up from its prior forecast of $7.65 to $7.85, and above analysts' consensus estimate of $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 narrowbody jets and a major player in the widebody market. Parts and services account for more than 70% of its commercial engine revenue.

Quarterly revenue at its commercial engines and services unit climbed 21% to $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% range, compared with its previous expectation of about 20% growth.

It reported an adjusted profit of $2.25 per share for the quarter through September, beating Wall Street expectations of $2.01.

Shares of the company rose nearly 1.2% in premarket trading.

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