(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.
"GE Aerospace is growing rapidly, executing on the ramp for customers and building services strength, while GE Vernova advances toward its spin-off as Renewable Energy improves and Power continues to deliver," CEO Larry Culp said in a statement.
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.
GE said operating profit at its aerospace business is now expected to be in the range of $5.6 billion to $5.9 billion this year, up from $5.3 billion to $5.7 billion estimated earlier.
In a sign of improvement at its renewable energy business, the company said the unit is expected to post stronger revenue than its previous estimate, translating into "significantly" better operating profit.
(Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila, Kirsten Donovan)
