General Electric Co, also known as GE, increased its commercial engine sales in its aeronautics segment by 11.8% in 2022, to 1,663 units.
Still to date, global materials availability and labor shortages, in part due to the Covid-19 pandemic, continue to cause disruption for the company and its suppliers, and have affected GE’s production and deliveries across all of its businesses.
All in all, General Electric increased its commercial and military engine sales units by 13% in 2022 compared to 2021, and combined engine sales units increased more than 25% in 2H2022 compared to 1H2022.
General Electric Co.
The company reported that it continues to collaborate with its airframe partners on future production rates.
Its Aerospace business segment has proactively managed the impact of inflationary pressure by deploying lean initiatives to drive cost productivity, partnering with its suppliers and adjusting pricing for its products and services.
General Electric expects the impact of inflation to remain a challenge and will continue to take steps to manage it.
The company’s 2022 results reflect the continued recovery of commercial air transportation from the effects of the pandemic.
A key underlying driver of its commercial engine and services business is global commercial air traffic, which improved 21% during 2022 compared to 2021, and now stands at approximately 90% of 2019 levels.
Recovery trends vary by region from government-imposed travel restrictions and the prevalence of Covid-19 virus variants around the world.
Moving forward, the company remains confident of recovery, and current trends are in line with its recovery forecast.
Consistent with updated industry projections, General Electric estimates that narrowbody and widebody air traffic will recover to 2019 levels by the end of 2023.
With respect to the military environment, General Electric continues to anticipate strong military demand that will create future growth opportunities for its military business as the U.S. Department of Defense and foreign governments have continued flight operations and allocated budgets to upgrade and modernize their existing fleets.
In September 2022, Aerospace and the U.S. Air Force successfully completed testing of the second XA100 adaptive cycle engine, marking the last major contractual milestone of the Air Force’s Adaptive Engine Transition Program (AETP).
GE Aerospace designs and manufactures commercial and military aircraft engines, integrated engine components, aircraft electrical and mechanical systems.
Its aerospace engines power aircraft in all categories: narrow-body, wide-body and regional, including engines sold by CFM International, an unincorporated 50-50 joint venture with Safran Aircraft Engines, a subsidiary of France‘s Safran Group, and Engine Alliance, an unincorporated 50-50 joint venture with Raytheon Technologies Corporation through its Pratt & Whitney segment.