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 said GE Aerospace had 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, engine removals and shop-visit activity.
The comments suggest GE Aerospace's engine services business is holding up even as the Iran war-driven fuel spike slows flight growth and pressures airline margins.
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. In April, the company said its outlook assumed Brent crude prices would remain elevated through the third quarter before easing by year-end, along with near-term constraints on fuel availability.
Aircraft departures are a key driver of its services business, as more flying increases engine wear and maintenance needs. But GE Aerospace has 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.
(Reporting by Rajesh Kumar Singh, Editing by Nick Zieminski)
