UPDATE 2-GE Aerospace sees engine maintenance demand hold up despite higher fuel prices

[출처/시간] Reuters - 1:52 PM ET, 05/27/2026

* Departures have softened, but spare-parts orders have accelerated

* Parked aircraft are down, easing concerns about retirements

* Strong new-engine and aftermarket ?demand is stressing suppliers

* Culp says Airbus ties improved after supply tensions (Adds more ?comments and background details throughout)

By Rajesh Kumar Singh

CHICAGO, May 27 (Reuters) -GE Aerospace?has not seen airlines pull back on engine maintenance or parts orders despite higher fuel prices and softer flight departures, CEO Larry Culp said on Wednesday, signaling continued strength in the aircraft engine maker's high-margin aftermarket business.

Speaking at a Bernstein investor conference, Culp said departures had softened over the past eight weeks, with growth now "relatively flat." But he saidGE Aerospacehad seen no operational impact or change in commercial behavior from airline customers.

"We feel very good about the second quarter," Culp said, citing continued strength in spare-parts orders and shop-visit activity.

Culp said parked aircraft had declined in May from April and were down from the start of the year, a signGE Aerospacedoes not see a looming wave of aircraft ?retirements.

Spare-parts orders, which rose 30% in the first quarter, have grown closer to 40% over the past roughly ?60 days, ?while GE is seeing more engines taken off aircraft for maintenance, he said.

Aircraft departures are a key driver of ?its services business, as more flying increases engine wear and maintenance needs. ButGE Aerospacehas said the impact on services revenue and profit this year should be limited because much of its 2026 maintenance workload is already locked in and ?demand for spare parts continues to outstrip supply.

The ?engine maker said last month it remained on track to hit the high end ?of its 2026 profit outlook, while warning that elevated oil prices, fuel supply constraints and slower global growth had ?made the backdrop more uncertain. The company has forecast adjusted profit of $7.10 to $7.40 per share for 2026.

SUPPLY ?CHAIN PRESSURE

Culp ?said strong demand for both new engines and aftermarket work ?was putting stress on GE's supply chain, with some suppliers hesitant to invest because they remain skeptical ?of aircraft production ramp-up plans. But he said suppliers also need to account for rising demand from GE's installed engine base, not just Boeing or Airbus production rates.

GE and France's Safran co-own CFM International, which makes engines for Boeing and ?Airbus narrowbody jets. Culp suggested relations with Airbus ?had improved after earlier tensions over engine supply, saying the companies ?had moved away from "arm wrestling" and public finger-pointing toward more direct problem-solving.

Culp said LEAP shop visits are shifting from early, lighter maintenance ?work to more extensive performance-restoration visits, which should bring in more revenue. He said GE has not yet seen the full benefit of price increases in some ?long-term LEAP aftermarket contracts. (Reporting by Rajesh Kumar ?Singh, Editing by Nick Zieminski)