The American engine manufacturer General Electric (GE) raised its adjusted profit forecast for the whole of 2023, relying on a sustained demand for the aircraft engine parts and services to airlines looking to profit from the rise in travel.
Boston, Massachusetts-based GE now forecasts 2023 adjusted earnings per share of $2.10-2.30 (€1.90-2.08), down from a previous forecast of $1.70-2.00 dollars. Analysts on average had expected earnings of $2.06 per share.
A faster-than-expected recovery in the aviation sector after the pandemic boosted results for engine makers. Indeed, the shortage of airliners has forced airlines to use their older aircraft longer, driving demand for highly lucrative aftermarket maintenance services. Strong demand also allowed GE to raise prices and lessen the impact of inflation on production costs. GE reported adjusted profit for the quarter to end June up 37% to $1.4 billion. Adjusted earnings per share were 68 cents.
GE manufactures engines for the long-haul Boeing 787 Dreamliner and the future 777X. The American is in joint venture with the French Safran within CFM International, which equips the single-aisle Boeing 737 MAX and about half of the Airbus 320neo.