UPDATE 2-GE Aerospace lifts 2026 forecast as airlines keep up maintenance spending
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Adds comment from conference call in paragraph 7, compares with estimates, updates share movement
July 16 (Reuters) - GE Aerospace GE.N raised its 2026 profit forecast on Thursday, as spending from airlines on aftermarkets services and parts remained resilient despite higher fuel prices and fewer flight departures.
Airlines worldwide have been forced to tighten spending and trim capacity to protect fares as the war in Iran disrupts global oil shipping routes, driving up jet fuel prices and adding fresh cost pressure.
GE Aerospace's services arm is closely tied to aircraft departures, since increased flying drives engine wear and maintenance demand.
Still, the company has said any drag on services revenue and profit this year is likely to be muted, as much of its 2026 shop-visit work is secured and spare-parts demand continues to exceed available supply.
The jet-engine maker expects an adjusted profit per share in the range of $7.65 to $7.85 for 2026, compared with $7.10 to $7.40 forecast earlier.
"While the environment remains dynamic, aftermarket demand has been resilient," CEO Larry Culp said in a call with analysts on Thursday.
Jet fuel prices have eased from the highs reached earlier this year but remain above levels seen before the war. Shares of the company were down about 2% in premarket trading.
The engine maker commands the narrowbody jet engine market through CFM International, its joint venture with France's Safran, while also holding a strong widebody franchise, with parts and services making up for more than 70% of commercial engine revenue.
Quarterly adjusted revenue from its commercial engine and services unit rose 27% to $9.7 billion from a year earlier. In 2026, it expects CES revenue to grow by about 20%, compared with its prior outlook of mid-teens percentage points.
The company reported a second-quarter adjusted profit of $2.02 per share, compared with analysts' estimates of $1.86, according to data compiled by LSEG. Total adjusted revenue of $12.63 billion beat expectations of $11.86 billion.