Speaker
Sean Broderick
Appearances over time
1 episodes
Episodes
1
Podcasts
Quotes & moments
Robust Q1 performance and stable engine overhaul queues have led several major engine manufacturers to upgrade their financial outlooks for the upcoming quarters.
Supply chain friction and engine delivery delays are pushing Airbus's monthly narrowbody production targets further to the right.
Because airlines pay monthly for ongoing maintenance agreements, critical engine overhauls are highly insulated from sudden airline cash-flow adjustments.
Commercial aviation aftermarket activity remains resilient despite the ongoing Middle East conflict. Major engine suppliers expect any tangible financial or statistical downturn to lag by quarters, possibly holding off until 2027.
Analysts have shifted from predicting a short-term disruption to bracing for a structural problem lasting through the year. Airlines face a toxic combination of elevated financing costs, expensive jet fuel, and depressed discretionary travel demand.
Following the rejection of recent peace plans, jet fuel prices soared to a range of $150 to $200. This massive jump from historical averages of $85 to $90 is causing carriers to cancel routes and scramble for margin protection.
Faced with expensive fuel, airlines will selectively park their older, less efficient aircraft and prioritize modern fleets. This shift could quickly flood the market with used serviceable material (USM), reshaping the aftermarket engine backlog.
Analysis
What they talk about
- Business 100%
Connections
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