NEW YORK, Jan 29 (Reuters) - Strong industry demand for jet engines should start to balance out with supply toward the end of the decade, Pratt & Whitney's president of commercial engines said on Thursday.
Rick Deurloo told a Wings Club event in New York that the RTX engine maker is increasing production and capacity for aftermarket repairs, as industry demand soars for engines.
A delay in aircraft delivery is prompting airlines to fly jets longer, boosting demand for parts and maintenance, and turning
the high-margin aftermarket services business into a profit driver.
“Based on what we see, what we're doing, I do see normalization at the end of this decade," Deurloo said in response to a question on when the supply and demand imbalance would level off.
Deurloo added the supply chain is improving but remains a challenge.
Earlier this week, RTX posted higher fourth-quarter revenue and profit, driven by a rise in sales for its engines and the industry's strong appetite for commercial aircraft maintenance and repair services.
Asked on the sidelines of the event about a Reuters report that planemaker Airbus is poised to start offering airlines and leasing firms a larger version of its A220 jet that uses Pratt engines, Deurloo said, "we’re working with them on continuing to improve their aircraft and as they look at different variants of that, we continue to be in dialogue."
(Doyinsola Oladipo in New York. Writing by Allison Lampert in Montreal. Editing by Rod Nickel)
