July 16 (Reuters) - GE Aerospace raised its 2026 profit forecast on Thursday, as spending from airlines on aftermarkets services and parts remained resilient despite higher fuel prices and fewer flight departures.
Airlines worldwide have been forced to tighten spending and trim capacity to protect fares as the war in Iran disrupts global oil shipping routes, driving up jet fuel prices and adding fresh cost pressure.
GE Aerospace's services arm is closely tied to aircraft departures, since increased
flying drives engine wear and maintenance demand.
Still, the company has said any drag on services revenue and profit this year is likely to be muted, as much of its 2026 shop-visit work is secured and spare-parts demand continues to exceed available supply.
The jet-engine maker expects an adjusted profit per share in the range of $7.65 to $7.85 for 2026, compared with $7.10 to $7.40 forecast earlier.
Shares of the company were up about 2% in premarket trading.
CEO Larry Culp had said in May GE Aerospace has not seen airlines pull back on engine maintenance or parts orders despite softer flight departures and higher fuel prices.
Jet fuel prices have eased slightly since then, but remain elevated compared with levels before the war began.
The engine maker commands the narrowbody jet engine market through CFM International, its joint venture with France's Safran, while also holding a strong widebody franchise, with parts and services making up for more than 70% of commercial engine revenue.
Quarterly revenue from its commercial engine and services unit rose 27% to $9.7 billion from a year earlier. In 2026, it expects CES revenue to grow by about 20%, compared with its prior outlook of mid-teens percentage points.
The company reported a second-quarter adjusted profit of $2.02 per share, compared with $1.66 a year ago. Total revenue of $13.35 billion was up 21% from last year.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)
