(Reuters) – General Electric’s aerospace business said on Thursday it expects operating profit to rise to about $10 billion in 2028, as it gains from strong demand for spare parts and services amid an aviation boom.
The aerospace giant has forecast operating profit of $6.0 billion to $6.5 billion for 2024. On Thursday, it set a target of returning 70% to 75% cash to shareholders via buybacks and dividends.
GE’s aerospace business is benefiting from a surge in demand for aftermarket services as a strong rebound in air travel and a shortage of new aircraft prompt airlines to keep their planes in the air for longer.
CFM International, GE’s joint venture with France’s Safran SA, is an engine supplier for Boeing’s 737 MAX jetliners and competes with RTX’s Pratt & Whitney to power Airbus’ 320neo jets.
The forecast comes ahead of GE Aerospace’s investor day later on Thursday.
Once a diversified industrial conglomerate, GE had said in 2021 it would break up into three companies focused on aviation, healthcare and energy. GE separated its healthcare business last year and expects to complete separation of the energy business on April 2.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shilpi Majumdar)
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