GE Aerospace lifts commercial engine profit outlook on strong services performance

Leap engine deliveries up by more than a quarter over the first nine months.
GE Aerospace has recorded a 5% rise in CFM International Leap engine deliveries – to 535 – over the course of the third quarter.

This took Leap deliveries for the first nine months of the year to 1,565 – a rise of 26%.

Leap engines for the Airbus A320neo and Boeing 737 Max families accounted for most of the 690 commercial engine deliveries in the three months to 30 September.

The company states that, while it delivered GE9X engines for the Boeing 777X programme during the quarter, the impact of these shipments will be recognised after certification of the powerplant’s mid-seal.

Higher Leap deliveries helped push revenues for the commercial engines and services division up 21% to $10.3 billion. Equipment revenue rose by 38% and services by 17%.

The company says the activity resulted in a 21% increase in profit to $2.9 billion. It attributes the performance other higher services volume and price.

This growth in services revenue has led GE Aerospace to revise slightly upwards its expectations for full-year revenue in the division.

It has also lifted its forecast for operating profit, to $10.5-10.6 billion, compared with $10.25-10.35 billion previously. It says this has been driven by the higher services growth and “reduced GE9X impact”.

Over the quarter the commercial engines and services division generated a 58% rise in orders to $15.3 billion.

GE Aerospace has recently disclosed commitments for over 1,000 Leap-1A powerplants for Indian budget carrier IndiGo and more than 300 Leap-1Bs for Turkish Airlines.

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