GE and Pratt & Whitney deliveries surge as travel rebounds and airlines prep for busy summer
General Electric’s aero-engine models on display at an exhibit in Shanghai late last year. GE, helped by growing engine deliveries, recorded sales and profits that beat expectations. PHOTO: CFOTO/ZUMA PRESS
Global airline passenger traffic this year is set to surpass 2019 levels despite recessionary fears, providing a boon for jet-engine makers.
General Electric Co. and Raytheon Technologies Corp., RTX 1.98%increase; green up pointing triangle the two biggest makers of plane engines, on Tuesday disclosed stronger quarterly financial results, reflecting the continued recovery in air travel and China’s relaxation of pandemic-driven restrictions.
Airlines preparing for a busy summer travel season are driving sales of spare parts at GE GE 1.53%increase; green up pointing triangle, Raytheon and other suppliers. Aircraft manufacturers Boeing Co. BA 1.75%increase; green up pointing triangle and Airbus SE are also delivering more jets following a surge in orders. Boeing reports quarterly results Wednesday.
“The recovery has strengthened as the world is eager to travel,” said GE Chief Executive Larry Culp on an investor call Tuesday.
Global air passenger traffic climbed 70% last year as more countries lifted restrictions, and big domestic markets such as the U.S. experienced a surge in business that left airlines and airports struggling to keep up. The rise in airfares driven by demand and higher fuel prices isn’t cooling growth, especially in regions such as Asia where traffic has been slower to improve.
Excerpt from WSJ
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