GE Aerospace’s deliveries of Leap turbofans slowed significantly in the second quarter of 2024 due to lingering supply chain troubles, with the company’s chief executive describing the quarter as “disappointing”.
The Ohio engine maker has also slashed its 2024 delivery guidance for CFM International Leap turbofans, saying it expects the full-year figure will be flat to up 5% year on year.
CFM, a joint GE-Safran Aircraft Engines business, delivered 1,570 Leaps in 2023. Earlier this year, GE estimated CFM would deliver 10-15% more Leaps this year than last.
Troubles aside, GE turned a $1.3 billion profit second quarter, up from a $37 million profit in the same period of 2023. It generated $9.1 billion in second-quarter revenue, up 4% year on year,.
“Our new-engine output was disappointing,” chief executive Larry Culp told investors on 23 July..
The company delivered 297 Leap turbofans in the period, down 19% from 367 in the first quarter of the year. The second-quarter figure was down 29% year on year.
Leap-1As are one of two power options for Airbus A320neo-family aircraft and Leap-1Bs are the only engine available for Boeing’s 737 Max.
Culp said earlier this year that nine suppliers and 15 supplier sites had been responsible for 80% of GE’s “material input shortages”.
“We’ve made significant improvements in many areas,” he says on 23 July. “At more than two-thirds of these sites, material flow more than doubled sequentially and is currently no longer constraining deliveries.”
“We are making some progress, but not enough to meet demand… Overall, we are not yet at a desired state,” Culp adds.
During this week’s Farnborough air show, GE announced several engine orders: notably British Airways signed to take GEnx turbofans for the first time on 787s in a deal covering six Dreamliners, while Japan Airlines agreed to buy GEnx for 20 787s, and National Airlines and Turkish Airlines signed for GE90s to power four 777Fs each.
