(Reuters) – General Electric Co on Tuesday raised its full-year adjusted profit forecast, betting on steady demand for aircraft engine spare parts and services from airlines looking to cash in on surging air travel.
The Boston, Massachusetts-based company now expects 2023 adjusted profit per share of $2.10 to $2.30, compared with its previous forecast of $1.70 to $2.00.
A faster-than-expected recovery in aviation from the pandemic lows has lifted results of engine makers as shortages of commercial planes have forced airlines to use old jets for longer, boosting demand for lucrative aftermarket services.
GE’s aviation business, its cash cow, makes engines for Boeing Co’s 787 widebody jets. Its joint venture with France’s Safran SA, CFM International, powers the U.S. planemaker’s 737 MAX jetliners and about half of Airbus’ 320neo jets.
The robust demand for air travel has also allowed GE to raise prices and cushion the hit from inflationary pressures.
GE said overall adjusted profit for the quarter through June jumped 37% to about $1.4 billion. On a per-share basis, adjusted profit was 68 cents.
Analysts on average were expecting a profit of 46 cents per share, according to Refinitiv. It was not immediately clear if the figures were comparable.
Total revenue rose 18% to about $16.7 billion.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila)
