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GE Aerospace Points to High End of 2026 Outlook After Q1 Beat, Cautions on Oil and Fuel

Higher oil and tighter fuel supply now shape the outlook for airline flying and maintenance demand.

Overview

  • GE Aerospace, which reported Tuesday, posted adjusted EPS of $1.86 and revenue of $12.39 billion for Q1, up about 25% on both measures, with total orders reaching $23 billion.
  • The company kept 2026 targets intact but said results are tracking to the top of its $7.10 to $7.40 earnings range and $8.0 to $8.4 billion free cash flow.
  • Management updated its planning to assume Brent crude stays high into the third quarter, near‑term jet fuel shortages linked to disrupted flows through the Strait of Hormuz, weaker global growth, and flat to low single‑digit flight departures in 2026.
  • Commercial Engines & Services led growth as services revenue rose 39%, engine deliveries increased 43%, and GE announced wins for more than 650 engines with American, United, and Delta.
  • Shares fell about 3.5% after the release as GE said spare‑parts demand is outpacing its capacity even as supply chains improve, a squeeze that could limit near‑term aftermarket upside.