GE Aviation sees profits brought down to earth
By Rob Freeman | 29th October 2020
GE Aviation saw its operating profit tumble by 79 per cent as the coronavirus pandemic continued to have a huge impact on the aviation industry.
The manufacturing giant, which employs more than 1,600 people designing and manufacturing electronic and mechanical systems at its Bishop's Cleeve site, said profit fell to $356million during the third quarter.
The figure comes on revenue of $4.9billion, a 39 per cent fall on the same period last year, with commercial engine and service revenue of $2.7billion (down 55 per cent).
Revenue in the defence sector was up seven per cent throughout the three months to $1.1billion, which was the same figure for systems and other work which remained around the same as 2019.
Around one in four aircraft powered by engines from GE and CFM International - which is part-owned by the company alongside Safran - have been parked during the pandemic.
Across the three months to the end of September, GE shipped 329 commercial aircraft engines to customers - down from 714 the previous year.
Orders for 88 new engines fell from 297 a year earlier.
The news comes the day after major customer Boeing reported losses of £354million across the last three months with plans for 7,000 job losses, while Airbus saw revenues fail by 27 per cent.
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