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Shares of the company rose 2.5% in premarket trading.
Aircraft shortage amid robust travel demand has left airlines
scrambling to expand capacity, forcing them to keep flying older
jets and driving up maintenance expenses.
That is expected to boost sales for GE Aerospace's spare parts
and services, which are priced at a premium. More than 70% of
its commercial engine revenue comes from parts and services.
The company expects annual adjusted profit in the range of $3.95
to $4.20 per share, compared with its prior forecast of $3.80 to
$4.05.
"We are accelerating our actions and leveraging Flight Deck to
unlock supply constraints and fully meet customer demand," GE
Aerospace CEO Larry Culp said on Tuesday.
The aerospace manufacturer also has a dominant position in the
jet-engine market through CFM International, its joint venture
with France's Safran SA.
CFM is an engine supplier for Boeing 737 MAX jetliners and
competes with RTX's Pratt & Whitney to power Airbus' 320neo
jets.
Engine makers typically sell engines to airlines at a discount
and recover the money by selling parts and services over the
life of the engine.
Analysts have been bullish on the prospects of the aerospace
unit since GE completed its breakup into three companies focused
on aviation, energy and healthcare.
GE Aerospace reported an adjusted profit of $1.20 per share,
compared with $0.74 a year ago.
However, like the rest of the industry, GE has suffered from a
shortage of parts, a problem highlighted by the aerospace
industry at the Farnborough airshow.
The company's adjusted revenue for the second quarter ended June
30 rose 4% to $8.22 billion.
(Reporting by Shivansh Tiwary and Abhijith Ganapavaram in
Bengaluru; Editing by Arun Koyyur)
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