GE Aerospace raises 2026 profit forecast as services strength drives growth

Oct 20 (Reuters) - GE Aerospace GE.N on Tuesday raised its 2026 profit forecast, betting strong demand for engine maintenance and spare parts will offset the impact of higher fuel costs on flights.

The jet-engine maker now expects its 2026 adjusted profit per share in the range of $8 to $8.10, compared with $7.65 to $7.85 forecast earlier.

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.

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 from its commercial engine and services unit rose 21% to $10.34 billion from a year earlier.

It reported an adjusted profit of $2.25 per share for the quarter through September, compared with $1.66 per share reported a year earlier.