GE Aviation finds glimmer on horizon after sales slump
By Rob Freeman | 27th January 2021
GE Aviation predicted the aerospace will begin recovering by the end of the year after reported a huge drop in engine sales over the past year.
Engine sales fell by 48 per cent in 2020 as the coronavirus pandemic hit airline travel, service revenue falling by 36 per cent.
Parent company General Electric reported aviation division made a profit of $1.2billion, a fall of 82 per cent on the previous year, while revenue was down 32 per cent to $22billion.
Orders for commercial aircraft engines fell by 72 per cent from 2,390 to 678, more than half of the for the joint CFM International Leap venture with Safran.
Leap power plants were responsible for 815 of the 1,487 engines delivered as revenue from engine sales fell 31 per cent to $2.3billion.
Just over a quarter of aircraft powered by GE units were grounded last year.
It predicts aviation revenue for 2021 will be "flat to up... dependent on the commercial aviation market recovery accelerating in the second half of 2021 as well as the timing of aircraft deliveries."
The company said cutting costs - including cutting 25 per cent of its aerospace propulsion business - had "led to steadily improving, positive margin and nearly break-even industrial free cash flow at aviation."
Copyright 2021 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.