GE Aerospace LEAP engine deliveries surge as aftermarket demand lifts outlook

GE Aerospace LEAP

Supply chain tailwinds support LEAP ramp

GE Aerospace LEAP engine deliveries jumped sharply in the second quarter. The surge in GE Aerospace LEAP engine deliveries reflects improving supplier output and steadier logistics. The company also raised guidance on stronger commercial services demand.

GE and Safran’s CFM International power the 737 MAX and A320neo. Meanwhile, GE Aerospace LEAP engine deliveries rose 38% year on year in the quarter. Total commercial engine shipments climbed 37%, while defense deliveries rose 84%.

GE credits supply stabilization for the throughput gains. Output at 12 priority suppliers increased 10% sequentially, with 95% on-time volumes. As a result, GE intends to burn down $3bn of “trapped inventory” accumulated since 2023.

Tariff risk still shadows the recovery. GE estimates a potential $500mn profit hit if reciprocal US duties arrive on 1 August. However, a new US-China framework has eased fears of retaliatory Chinese tariffs on spares.

Materials intensity and services momentum

The LEAP ramp strengthens demand for titanium and nickel alloys. That pull-through spans low-pressure and high-pressure sections across narrowbody fleets. Looking ahead, GE targets 2,500 LEAP deliveries in 2028 to match OEM rates.

Technology upgrades should extend time on wing. GE expects Boeing certification of a new HPT blade by the first half of 2026. The kit, already rolling into Airbus fleets, should more than double LEAP durability.

Aftermarket services now power earnings growth. Second-quarter MRO revenue rose 21% to $7.3bn on higher spares and shop visits. Airlines are flying older aircraft longer as new-build deliveries lag plan.

GE lifted full-year operating profit guidance to $8.2bn–$8.5bn. Quarterly profit rose 60% to $2bn, with revenue up 21% to $11bn. Therefore, GE Aerospace LEAP engine deliveries and services together underpin a firmer 2025 trajectory.

The Metalnomist Commentary

The LEAP ramp is pulling metals through the value chain, notably titanium and nickel alloys. If tariff risks recede, the combination of durability upgrades and MRO breadth should compress downtime and smooth cash conversion across narrowbody fleets.

Safran Advances CFM Rise Compressor and Fan Testing

Safran

French aerospace manufacturer Safran is making progress on testing the low-pressure compressor and composite fan blades for the CFM Rise open fan engine, a next-generation propulsion system designed for greater efficiency and lower emissions. The Rise program, led by CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, is expected to power aircraft entering service in the mid to late 2030s.

Testing Safran’s Next-Generation Compressor

Safran Aero Boosters has prepared its first high-speed low-pressure compressor, named e-artemis, for testing at an aerodynamic facility in Belgium. The tests will evaluate new designs such as an integrally bladed rotor made from titanium alloys for improved durability and resistance to potential impact. These efforts build on Safran’s experience supplying compressors for engines including the CFM Leap, GEnx, GE9X, and GE Passport.

Fan Blade Development and Expanded Facilities

Safran has also tested three large-diameter composite fan blade configurations to validate performance in mechanical integrity, aerodynamics, and acoustics for unducted environments. To support this work, the company is constructing a new test facility in Villaroche, France, featuring an 8-meter-wide chamber for large-scale component testing, set to open next year.

The Metalnomist Commentary

Safran’s advancement of CFM Rise component testing underscores Europe’s commitment to leading sustainable aviation technology. By combining titanium innovation with composite fan design, the program positions itself as a major step toward fuel efficiency and lower emissions in the global aerospace industry.

Safran Opens Titanium Compressor Blade Plant in Belgium to Boost Engine Supply Chain

Safran titanium blade

Strategic Investment Enhances Aerospace Manufacturing Capacity

Safran has inaugurated a new titanium compressor blade plant in Marchin, Belgium, to reinforce its engine supply chain resilience. The facility is part of Safran Blades, a partnership between Safran Aero Boosters and Belgian federal and Walloon authorities, representing a €108mn investment. Safran holds a 56% stake, Wallonie Entreprendre owns 28%, and Belgian Federal Holding and Investment has 16%.

The 10,000m² plant will produce 700,000 titanium compressor blades annually. These blades are integral to GE Aerospace’s GEnx engine, which powers Boeing’s 787 Dreamliner, and the LEAP engine by CFM International, a joint venture between Safran and GE Aerospace. Safran also manufactures the low-pressure compressor modules for both programs.

The facility is located on a former ArcelorMittal steel site, closed permanently in 2013. The opening comes as demand for narrow-body jet engines like the LEAP rises due to higher production rates for Airbus A320neo and Boeing 737 MAX aircraft. While wide-body programmes such as the 787 are still recovering from supply chain constraints, demand is projected to strengthen over the next few years.

The Metalnomist Commentary

Safran’s investment underscores a strategic shift toward securing titanium component production within Europe’s aerospace sector. As titanium remains critical for high-performance engine parts, localized capacity reduces dependency on global supply chains and strengthens long-term competitiveness in the face of rising demand.

EASA Certification of Comac C919 Could Take Up to Six Years, Delaying Global Expansion

Comac C919

European Approval for China’s Flagship Jet Hinges on Extended Evaluation Timeline

The EASA certification of Comac C919 will require between three and six years, according to the European Union Aviation Safety Agency. The announcement underscores the regulatory hurdles facing China’s flagship single-aisle jet, which is currently certified only by the Civil Aviation Administration of China (CAAC). Without EASA approval, Comac’s C919 remains restricted to domestic operations, limiting its global commercial ambitions.

International Components, Domestic Ambitions

The C919 incorporates key systems from global suppliers, including CFM International’s LEAP-1C engine, avionics from Honeywell, GE Aerospace, and Collins Aerospace, and structural parts from various European and American firms. Despite this reliance on international technologies, EASA insists that it must independently verify the aircraft’s integration and design before granting certification. Comac has been commended for its transparency and proactive engagement with regulators.

Certification Timeline Reflects Political and Technical Complexities

The extended timeline for EASA certification of Comac C919 reflects both technical scrutiny and geopolitical realities. Comac’s absence from the FAA certification process indicates a strategic focus on Europe as its primary overseas market. However, in a protectionist trade environment, market access remains uncertain. As Comac seeks to challenge Airbus and Boeing in international markets, regulatory acceptance becomes a critical barrier.

The Metalnomist Commentary

The EASA certification of Comac C919 will be a litmus test for China’s global aerospace ambitions. While technical hurdles are expected, geopolitical headwinds may ultimately shape how far Comac can go in Western markets.

Airbus 1Q Deliveries Impacted by Engine and Parts Shortages

Airbus A320

Supply Chain Constraints Hit A320 and A350 Programs

Airbus delivered 136 aircraft in the first quarter of 2025, six fewer than the same period last year. This shortfall reflects persistent supply chain issues, notably engine shortages and delayed parts from Spirit AeroSystems.

A320 family deliveries fell to 106 aircraft, down from 116 last year. CFM International’s Leap engine deliveries remain constrained, affecting output. However, Airbus delivered more A220 jets — 17 units, up from 12 a year ago.

Meanwhile, A330 deliveries dropped to four from seven, while A350 deliveries rose to nine, up from seven. Despite the dip in total quarterly deliveries, output increased monthly — from 25 in January to 71 in March.

Airbus Maintains 2025 Guidance Amid Delivery Bottlenecks

Airbus is still targeting 820 total aircraft deliveries in 2025, with a significant ramp-up expected in the second half. Leap engine supplies are projected to normalize by mid-year, enabling faster delivery rates from July onward.

Gross orders reached 280 aircraft in Q1, with net orders totaling 204 after cancellations.

The company’s backlog now stands at 8,726 aircraft — about 10 years of production at current rates.

Airbus output remains the primary barometer of its industrial performance, even though deliveries do not perfectly align with production. As a result, market watchers closely follow monthly shipment trends for insights into aerospace supply chain recovery.

The Metalnomist Commentary

Airbus’ Q1 data underscores the fragility of global aerospace supply chains, especially in engine and structural components. While order books remain strong, execution risk continues to weigh on output. Leap engine normalization and Spirit AeroSystems’ reliability will be key to Airbus delivering on its ambitious 2025 targets.

Melrose Industries Reports 26% Engine Revenue Growth on Aftermarket Strength in 2024

Melrose Industries

Defence spending and additive fabrication boost GKN Aerospace unit despite civil production headwinds.

Melrose Industries, the UK-based parent of GKN Aerospace, reported a 26% rise in engine division revenue to £1.46 billion ($1.88 billion) in 2024. The company’s engine aftermarket business grew by 32%, helping push operating profit up 40% to £422 million.

Aftermarket demand surged due to increased defence contracts and maintenance-related services, as commercial aircraft deliveries remained constrained. This dynamic benefited Melrose’s service business while placing pressure on original equipment (OE) volumes.

Defence Demand and OEM Partnerships Support Outlook

Melrose highlighted strong defence sector momentum, which offset civil market weakness. While structures revenue rose 3% to £2.01 billion, it declined 5% when adjusted for exited business. Civil aircraft destocking and sluggish OE build rates—notably at Boeing and Airbus—continued to limit growth.

The company's revenue mix remains 72% civil to 28% defence, but with EU and NATO nations ramping military budgets, defence is set to play a larger role in 2025 and beyond.

Melrose also made strategic strides in additive fabrication, delivering its first fully 3D-printed demonstrator case for CFM International’s RISE engine programme. It has secured long-term contracts with Pratt & Whitney and GE Aerospace, positioning itself as a key player in next-generation aerospace components.

2025 Outlook: Growth to Moderate Amid Supply Chain Constraints

Melrose projects 2025 revenue between £3.55–3.7 billion, but cautioned that supply chain bottlenecks may slow growth, especially in the structures business. However, continued aftermarket expansion and innovation in fabrication techniques offer upside for the engine division.

With strong defence tailwinds, additive manufacturing adoption, and established OEM ties, Melrose is well-positioned for strategic growth across core aerospace segments.

Airbus Sets Ambitious 2025 Target of 820 Aircraft Deliveries Amid Supply Chain Headwinds

Airbus

LEAP Engine Supply and Spirit AeroSystems Integration Pose Near-Term Challenges

Airbus, the European aerospace giant, has announced a 2025 delivery target of approximately 820 commercial aircraft, up from a revised 770-unit goal for 2024.

The announcement, made during the company’s annual press conference, reflects long-term confidence, even as supply chain disruptions continue to pose risks in the short term.

One of the main bottlenecks remains the supply of LEAP engines from CFM International, a joint venture between Safran Aircraft Engines and GE Aerospace.

These delays continue to hamper A320neo production, especially during the first half of 2025, according to Airbus CEO Guillaume Faury. To compensate, Airbus plans to accelerate deliveries in the second half of the year, assuming engine supply conditions improve.

Spirit AeroSystems Deal Delays A350 Freighter, Affects Ramp-Up

Airbus also faces challenges linked to its pending acquisition of select Spirit AeroSystems sites and work packages.

The transaction is expected to close in H1 2025, but current part shortages from Spirit are already impacting production for A350 and A220 models, said CFO Thomas Toepfer.

The full integration of Spirit assets post-acquisition will take time, contributing to Airbus’ decision to delay the A350 freighter variant entry into service from 2026 to H2 2027.

This shift reflects the reality that operational issues at Spirit could persist even after the deal closes.

In January 2025, Airbus delivered just 25 aircraft, including 23 narrowbody jets and 2 widebody A350s, down from 28 single-aisle jets in January 2024 and 102 aircraft in December 2024.

This slowdown underscores the fragility of current output levels, especially for A220s and A320neo family aircraft.

Long-Term Outlook Remains Strong Despite Tariff and Supply Risks

Despite near-term turbulence, Airbus reaffirmed its production ramp-up goals:

• A220 at rate 14 by 2026

• A320 at rate 75 by 2027

• A350 at rate 12 by 2028

The A330 production rate will stabilize at four per month, with no immediate plan for increases.

On trade concerns, CEO Faury noted that tariffs from the U.S. are unlikely to significantly affect Airbus due to its integrated transatlantic footprint. He emphasized that Airbus is a major export customer for the U.S. aerospace industry, highlighting the mutual dependency across the Atlantic.

FAA Approves Pratt & Whitney’s New GTF Advantage Engine for Airbus A320neo

Pratt & Whitney

Engine Upgrade Extends Life Cycle and Boosts Long-Range Capabilities

The U.S. Federal Aviation Administration (FAA) has approved the GTF Advantage engine by Pratt & Whitney for commercial use. This next-generation engine will power Airbus A320neo aircraft starting in the second half of 2025.

The GTF Advantage is an upgraded version of the PW1100G-JM geared turbofan (GTF) engine. It will become the production standard for Pratt & Whitney-powered A320neo aircraft, the company confirmed last Friday.

Airbus also offers the LEAP-1A engine, made by CFM International, a joint venture between GE Aerospace and Safran. Together, these two engine options define the propulsion strategy for Airbus’ best-selling narrow-body jet.

Engineering Enhancements Aim to Extend Time on Wing

The GTF Advantage was designed to extend time on wing and reduce engine maintenance cycles. To do so, Pratt & Whitney integrated a new airfoil design and advanced coating technologies in the high-pressure turbine.

Operating temperatures have been lowered through component upgrades, improving fuel efficiency and durability. Some of these enhancements can already be applied to existing GTF engines to deliver immediate performance benefits.

The engine also provides greater takeoff thrust, allowing it to serve larger variants like the A321XLR. This extra-long-range model aims to compete with widebody jets on transcontinental and long-haul routes.

Airbus and Pratt & Whitney Push the Narrow-Body Frontier

Airbus has received over 500 orders for the A321XLR, signaling strong demand for fuel-efficient long-range narrow-body aircraft. Airbus recently delivered its first LEAP-powered XLR aircraft to Iberia, a major Spanish airline.

Pratt & Whitney, a subsidiary of RTX, continues to innovate in high-performance propulsion for commercial aviation. With FAA certification now secured, the GTF Advantage sets a new benchmark for engine longevity, sustainability, and flight efficiency.

Airbus Sets Sights on 820 Aircraft Deliveries in 2025 Amid Supply Chain Strains

Airbus

LEAP Engine Bottlenecks and Spirit AeroSystems Delays Challenge Production Targets

Freighter Variant of A350 Pushed to Late 2027 as Integration Timeline Shifts

Airbus is targeting the delivery of 820 commercial aircraft in 2025, a moderate ramp-up from its 2024 revised goal of 770 units. However, persistent engine supply constraints and disruptions in aerostructure sourcing could hinder short-term momentum. CEO Guillaume Faury acknowledged that A320neo deliveries will remain impacted in the first half of 2024, requiring a recovery surge in the second half.

CFM Engine Supply Remains a Key Bottleneck

LEAP engine supply from CFM International — a joint venture between Safran Aircraft Engines and GE Aerospace — continues to restrict Airbus’ A320 production. In January 2024, Airbus delivered just 23 single-aisle aircraft, down from 28 a year earlier and well below December’s 102. Faury emphasized that production normalization is expected mid-year, but supply tightness will persist until then.

Spirit AeroSystems Delays Affect A350 and A220 Ramp-Up

Airbus plans to close its acquisition of select Spirit AeroSystems assets in the first half of 2024. However, ongoing operational difficulties at Spirit are already affecting A350 and A220 build rates. CFO Thomas Toepfer confirmed that full integration of Spirit’s work packages will take time. As a result, Airbus has postponed the A350 freighter entry into service to H2 2027, a full year later than planned.

Despite these pressures, Airbus remains confident in its long-term ramp-up trajectory. It reaffirmed targets of A220 rate 14 by 2026, A320 rate 75 by 2027, and A350 rate 12 by 2028, while A330 production stabilizes at four aircraft per month, with no current plans for increase.

Tariff Exposure Minimal Despite Transatlantic Trade Uncertainty

Airbus is assessing potential tariff exposure due to US-EU trade dynamics, but Faury believes the company’s interconnected supply ecosystem limits risk. "We are the first export customer of the US aerospace industry," he said, highlighting that tariffs would create a lose-lose scenario for both regions.

Lufthansa Technik to Establish Jet Engine Repair Facility in Calgary, Boosting LEAP Engine Support in North America

Lufthansa Technik

WestJet Partnership Anchors Lufthansa Technik's Canadian Expansion

Lufthansa Technik (LHT), a global leader in aerospace aftermarket services, will build a LEAP jet engine repair facility at Calgary International Airport. This marks a pivotal step in enhancing North America's engine maintenance capacity amid rising demand.

The new plant is part of a 15-year strategic partnership with Canadian carrier WestJet, who will serve as the launch customer. The facility will begin construction in mid-2025 and is projected to be operational by 2027. The initiative has secured $120 million in combined funding from municipal, provincial, and federal levels in Canada, reflecting broad governmental support for aerospace investment.

Strategic Growth Driven by Engine Demand and Delays in Aircraft Delivery

The facility will specialize in maintenance, repair, and overhaul (MRO) of LEAP engines, a high-efficiency powerplant developed by CFM International, the joint venture between GE Aerospace and Safran. The LEAP-1B powers Boeing 737 MAX, while the LEAP-1A supports the Airbus A320neo series. Both programs have experienced delivery delays, pushing airlines to operate older aircraft longer, which has driven demand for MRO services.

LHT will conduct complex engine overhauls in Hamburg and at its Polish joint venture, XEOS, alongside the new Calgary site. This distributed network aims to meet increased aftermarket needs, especially as titanium-intensive components face production bottlenecks.

Calgary Facility Positions Canada as Key Player in Global MRO Market

This move positions Calgary — and by extension, Canada — as a growing hub in the global aerospace maintenance landscape. Beyond WestJet, LHT plans to open the facility’s services to other LEAP engine operators across North America. This long-term investment also reflects a strategic realignment of global MRO resources toward regions with growing fleet maintenance needs and supportive government frameworks.

Safran Navigates Tariff Risks While Targeting Leap Engine Production Surge

Safran

Rising Demand from Airbus and Boeing Drives 2025 Leap Engine Outlook Despite Cross-Border Trade Concerns

Safran, the French aerospace giant, is closely watching potential U.S. tariff exposure as it plans a sharp increase in Leap engine production. Growing demand from both Airbus and Boeing is fueling the ramp-up, yet Safran remains cautious due to the complex global supply chain behind its CFM International joint venture with GE Aerospace.

Although Leap engine demand is set to rise, Safran's supply chain spans multiple countries. Components for the Leap 1A and 1B engines cross borders between France, the U.S., and Mexico, making them vulnerable to any future trade policy shifts. CEO Olivier Andriès emphasized this risk during the company’s full-year earnings call, stating that the impact of tariffs remains uncertain without knowing their exact scope.

Leap Engine Production Targets Face Supply and Policy Headwinds

Safran delivered 1,407 Leap engines in 2024, a drop from 1,570 units in 2023. The decline stemmed from high-pressure turbine (HPT) constraints on the 1A variant and reduced Boeing 737 MAX production, which affected the 1B. Nonetheless, the company reaffirmed its 2025 delivery target of 1,618–1,688 Leap engines, reflecting a 15–20% increase.

To support this growth, certification of a new HPT blade for the 1A is expected in 2025. Additionally, approval for an updated blade on the Boeing variant will help ease production bottlenecks. However, Safran acknowledged that both supply chain capacity and potential U.S. tariffs remain the two largest risks to this ramp-up.

Strong Growth Across Airbus Programs Offsets Leap Shortfall

Outside of the Leap program, Safran reported growth across several Airbus platforms. A320neo nacelle deliveries rose 7% to 622 units, while A330neo nacelles increased 15% to 62 units. Landing gear sets for the Boeing 787 jumped 37% to 41 units, while A320 landing gear sets rose 3% to 601.

In legacy engines, deliveries of the CFM56 rose 15% to 60 units, while high-thrust engines increased 3% to 195 units. Military M88 engine deliveries dipped slightly by two units, totaling 40.

As Safran prepares to scale production in 2025, its global manufacturing footprint—spanning over 18 sites in Mexico, 7 in Canada, and 24+ U.S. states—positions it well for long-term growth, but also increases exposure to trade risks.

Safran Expands LEAP Engine Production in India with New Agreements

Safran Aerosystems

Safran signs deals with HAL and TEAL for the production of LEAP engine parts in India.

French aerospace manufacturer Safran Aircraft Engines has expanded its presence in India by signing agreements with Hindustan Aeronautics (HAL) and Titan Engineering and Automation Limited (TEAL) for the production of LEAP engine parts. This move strengthens Safran’s manufacturing footprint in South Asia and aligns with its strategy to localize production and meet the growing demand for aircraft engines in the region.

LEAP Engine Parts Production with HAL and TEAL

Under the agreements, HAL will manufacture nickel ring forgings for the CFM LEAP engine turbine, further strengthening the long-standing relationship between Safran and HAL. This partnership is particularly important, as CFM International — a 50:50 joint venture between Safran Aircraft Engines and GE Aerospace — produces the LEAP engines that power Boeing's 737 MAX and Airbus' A320neo aircraft.

Meanwhile, TEAL, a subsidiary of Titan Engineering and part of the Tata Group, will produce parts for the LEAP engine’s low-pressure turbine. Production is set to begin in 2026, marking another significant step for Safran’s expansion in India’s aerospace sector.

Safran’s Expanding Footprint in India

The agreements highlight Safran's ongoing investment in India, where the company already operates five sites in Hyderabad, Bengaluru, and Goa. In addition, Safran is set to open a sixth site for maintenance, repair, and overhaul (MRO) in Hyderabad later this year. This continued expansion reflects the company’s commitment to bolstering its capabilities and meeting the needs of the growing Indian aerospace industry.

Conclusion

Safran’s partnership with HAL and TEAL for LEAP engine production in India is a significant milestone in the company’s global strategy. By localizing production and fostering long-term partnerships, Safran is positioning itself to remain at the forefront of the aerospace industry in South Asia.

GE Aerospace Boosts 2025 MRO Growth Forecast

GE Aerospace

GE Aerospace anticipates higher MRO demand, revising its 2025 outlook upwards. This reflects increased shop visits and service segment growth.

MRO Services See Increased Demand

GE Aerospace now projects "low double digits to mid teens" growth for its MRO services. This surpasses its December forecast of just "low double digits." Specifically, the company expects shop visit volume to rise by high single digits. This increase comes amid delays in new aircraft deliveries from Boeing and Airbus. Consequently, airlines must maintain older fleets, boosting demand for engines like the CFM56 and GE90. Furthermore, GE Aerospace notes improvements in work scope and pricing for its services.

Supply Chain Improvements and Engine Deliveries

Moreover, GE Aerospace reaffirms LEAP engine delivery growth of 15-20pc. This forecast, provided by partner Safran, follows CFM International's shipment of 1,407 units in 2024. Significantly, GE Aerospace has focused on alleviating supply chain bottlenecks. Priority suppliers now ship over 90pc of committed material volumes. This marks a substantial increase from 50pc earlier in 2024. Additionally, fourth-quarter LEAP deliveries reached 378 units, while total commercial engine shipments totaled 519. Overall, GE Aerospace's full-year profit reached $7.6bn, with revenues climbing to $38.7bn.

Airbus Delivers 766 Aircraft in 2024, Nearing Target Despite Supply Chain Hurdles

Airbus

European aerospace giant Airbus delivered 766 aircraft in 2024, surpassing the previous year's total but narrowly missing its revised target. The company navigated persistent supply chain challenges while increasing production, demonstrating resilience in a complex environment.

Delivery Performance and Order Book

Airbus delivered 766 aircraft in 2024, a 4.2% increase from the 735 deliveries in 2023.  The company secured 878 gross new orders (826 net after cancellations), expanding its year-end backlog to 8,658 aircraft, up from 8,598 at the end of 2023. While order growth was lower than the substantial figures seen in 2023, the current backlog represents over a decade of production.   

Navigating Supply Chain Constraints

Airbus fell just short of its revised target of approximately 770 aircraft, which had been lowered from an initial goal of 800 due to persistent supply chain issues. The company cited engine shortages, cabin equipment disruptions, and aerostructure challenges as key factors.  Issues with high-pressure turbine blade yields from CFM International's LEAP-1A engines impacted deliveries, though the recent certification of a new blade is expected to alleviate this bottleneck.  Despite these headwinds, Airbus managed a steep increase in output during November and December, nearly achieving its revised target.   

Production Highlights and Market Dynamics

Airbus delivered 602 A320 family aircraft in 2024, averaging roughly 50 per month, with a fourth-quarter rate of 68.  This included the first delivery of the A321XLR, the company's new long-range single-aisle variant. Airbus aims to reach a monthly production rate of 75 A320neo aircraft by 2027.  While the company saw strong order momentum for its widebody aircraft, particularly those with higher titanium content, it cautioned that ramping up A350 production in 2025 will depend on supply chain stability.  

Challenges in managing these supply chains were evident in lower A350 deliveries compared to the previous year, while A330 deliveries remained flat.  Airbus once again outpaced its main competitor, Boeing, which delivered 318 jets through November. Boeing's 2024 operations were significantly impacted by safety and quality issues, regulatory scrutiny, and a worker strike.   

FAA and EASA Certify CFM LEAP-1A HPT Blade for Durability Enhancement

CFM International

The FAA and EASA have certified CFM International’s upgraded high-pressure turbine (HPT) blade for the LEAP-1A engine, improving durability and extending time on wing in hot environments.

Durability Boost for LEAP-1A Engines

The Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) have approved a critical hardware upgrade for the LEAP-1A engine developed by CFM International, a joint venture between Safran Aircraft Engines and GE Aerospace. The newly certified high-pressure turbine (HPT) blade kit aims to increase engine durability, particularly in extreme operating environments like the Middle East, and enhance the engine's time on wing.

The certified kit includes:

• HPT stage-one blade
• Stage-one nozzle
• Forward inner nozzle support

These components are designed to withstand high operating temperatures, improving the engine’s overall performance and lifecycle.

Addressing Supply Chain Bottlenecks

The LEAP-1A engine powers Airbus A320neo aircraft, while the LEAP-1B variant exclusively powers Boeing’s 737 MAX. However, the supply chain for HPT blades has faced significant challenges, impacting engine deliveries in the first three quarters of 2024. During its third-quarter earnings call, Safran revealed that while certification of the new HPT blade was imminent, the delays had already constrained production.

With the certification complete, CFM International is prepared to ship the upgraded blades, focusing first on the maintenance, repair, and overhaul (MRO) market. This should alleviate pressure on airlines operating LEAP-1A engines, many of which are critical to global aviation fleets.

Certification for an updated HPT blade for the LEAP-1B variant is expected by the end of 2025, signaling further advancements in turbine blade technology for Boeing aircraft.

Advanced Materials for Extreme Performance

The high-pressure turbine blades are made from nickel-based superalloys that include chromium, molybdenum, and cobalt, which allow them to endure extreme temperatures and mechanical stress. These advanced materials are vital to enhancing the performance of modern aircraft engines, particularly in demanding conditions.

The certification underscores CFM International’s commitment to advancing engine technology and meeting the evolving needs of global aviation.

Safran Predicts LEAP Engine Delivery Growth in 2025

Safran Aerosystems

French aerospace manufacturer Safran anticipates a 15-20% increase in LEAP engine deliveries in 2025 as demand rebounds for the Airbus A320neo and Boeing 737 MAX.

LEAP Engine Delivery Forecast

Safran, in collaboration with CFM International, expects LEAP engine deliveries to grow to approximately 1,649-1,727 units in 2025, a recovery from the estimated 10% decline in 2024 deliveries from 1,570 units in 2023. The LEAP engine powers Boeing’s 737 MAX exclusively and competes with Pratt & Whitney’s PW1100G-JM for installation on Airbus’s A320neo jets.

The projected recovery remains tempered by:

• 737 MAX production slowdowns at Boeing.
• Turbine blade yield issues affecting the Airbus A320neo engine variant.

Aftermarket Revenue Outlook

Safran expects lower year-over-year revenue growth in its civil aftermarket segment for 2025:

• Spare parts revenue is forecast to grow in the mid-to-high single digits.
• Services revenue is projected to increase by mid-teens percentages.

This marks a slowdown compared to the mid-twenties growth rate anticipated for overall aftermarket revenues in 2024. From 2025 onward, Safran plans to split its aftermarket revenue reporting into spare parts and services to reflect the increasing share of service contracts.

Supply Chain Challenges Persist

While the aerospace supply chain is improving, Safran highlighted that full recovery is unlikely by 2025. The company cited supply chain production capability as the main risk to meeting its guidance. Safran reiterated these concerns in its October report and during its recent capital markets day.

Despite challenges, Safran’s cautious optimism aligns with the ongoing recovery in global aerospace manufacturing, supported by rising demand for narrowbody jets and sustained investment in engine technology.

Safran Invests Over €1bn to Expand Engine MRO Network for Growing LEAP Fleet

Safran Aerosystem

Safran, the French aerospace giant, has announced a significant investment of over €1bn (approximately $1.08bn) to expand its maintenance, repair, and overhaul (MRO) network. This move comes in response to the growing demand for services related to the CFM LEAP narrowbody engine, which powers key aircraft such as the Airbus A320neo, Boeing 737 MAX, and COMAC C919.

The investment will enable Safran Aircraft Engines to handle up to 1,200 LEAP engine shop visits annually by 2028, reflecting the surge in demand for MRO services. The company plans to expand its global MRO capacity by constructing an additional 120,000m³ of industrial facilities worldwide. This expansion includes several new and upgraded sites:

• Belgium: A new facility launched earlier this year.
• Hyderabad, India: A new MRO site set to open in 2025.
• Queretaro, Mexico: A second MRO shop and test platform.
• Casablanca, Morocco: A new facility slated for 2026.
• Villaroche and Saint-Quentin-en-Yvelines, France: Expansions in 2025 and 2026, respectively.
• Rennes, France: A new turbine blade repair site.

CFM LEAP Engine and Industry Trends

The LEAP engine is a product of CFM International, a joint venture between Safran Aircraft Engines and GE Aerospace. It has become a crucial part of modern aviation, powering major narrowbody jets. The LEAP engine competes with Pratt & Whitney's PW1100G-JM and has been a key player in airline fleets worldwide.

The MRO services demand for LEAP engines has soared in recent years, as airlines have been forced to extend the life of existing aircraft due to supply chain challenges delaying the delivery of new aircraft. As a result, the CFM LEAP aftermarket services have become increasingly vital to keep these engines running efficiently.

In Q3 of 2024, CFM delivered 365 LEAP engines, though this was 24 fewer units compared to the previous year due to bottlenecks in the production of high-pressure turbine blades and a decline in demand from Boeing.

Strategic Moves by Competitors

Safran’s investment comes in a broader context of increased competition in the MRO sector. In July 2024, GE Aerospace, Safran's US partner, announced a $1bn investment in expanding its MRO capacity. Similarly, Rolls-Royce, a major engine manufacturer based in the UK, revealed a £55mn ($71mn) investment in its own engine services capacity in March 2024. This highlights the growing recognition of the critical role MRO services play in maintaining the efficiency of modern aircraft engines.

Safran’s LEAP Engine Deliveries Drop in 3Q Amid Boeing and HPT Challenges

Safran

French aerospace manufacturer Safran, through its joint venture CFM International with GE Aerospace, reported a decline in LEAP engine deliveries in the third quarter of 2024. The decrease is attributed to lower deliveries of LEAP-1B engines to Boeing, coupled with high-pressure turbine (HPT) blade yield issues affecting the Airbus variant.

Key Delivery Figures

• Total LEAP Engines Delivered: 365, down by 24 units from the same period last year.
• Sequential Growth: Deliveries increased by 68 units compared to the second quarter due to improved HPT yield.

Boeing’s reduced 737 Max production—driven by systemic production issues, a federal limit, and ongoing labor strikes—has created a surplus of LEAP-1B inventory. Safran estimates Boeing's excess stock to be in the “three-digit” range but refrained from providing specifics.

Developments in HPT Blade Technology

• A new HPT blade for the LEAP-1A is expected to receive certification in the coming weeks, with initial shipments ready for the maintenance, repair, and overhaul (MRO) market.
• The LEAP-1B blade is scheduled for certification by the end of 2025.

Airbus and Safran’s Production Adjustments

• Safran reported a buildup of low-pressure modules due to limitations on LEAP engine production.
• It remains cautious about destocking to ensure readiness for anticipated production ramp-ups at Airbus and eventually Boeing.

Landing Gear and Nacelle Deliveries

• A320 Landing Gear: 142 units delivered, down by 11 units year-on-year.
• A350 Landing Gear: Flat at 11 units, though below pace.
• A320neo Nacelles: Deliveries increased by 25% to 159 units.
• 787 Landing Gear: More than doubled to 14 units, up from six a year earlier, as unaffected by Boeing’s 737 Max issues.

Financial Highlights

Safran’s civil aftermarket performance supported strong financials, with:

• Revenues up 14% to €6.6 billion ($7.1 billion).
• A 20% rise in propulsion aftermarket services, reflecting robust demand for engine maintenance and repairs.

Outlook

Safran expects the Boeing strike to resolve in the coming weeks but acknowledges that full supply chain normalization won’t occur until after 2025. The company is closely monitoring 20 critical suppliers to ensure future stability.

New Engine Builds and Legacy Parts Fuel Robust Titanium Demand in Aerospace and Defense Markets

Demand for titanium is on an upward trajectory, driven primarily by the aerospace sector’s ongoing need for current-generation engines and a growing demand for spare parts in legacy aircraft programs, delegates at the International Titanium Association (ITA) conference learned Monday. The aerospace sector’s consumption of titanium is set to expand at a compounded annual growth rate (CAGR) of 10.5 percent over the next five years, according to Marty Pike, president of ATI’s specialty materials unit. This growth reflects a convergence of factors, including new engine builds, heightened maintenance needs, and strategic defense applications.

Driving Forces Behind Aerospace Demand

Increasing build rates among airframe manufacturers and a rise in maintenance, repair, and overhaul (MRO) services are key forces behind titanium’s expected growth, particularly as Airbus and Boeing face backlogs totaling over 14,000 aircraft through 2034. CFM International's LEAP engines and Pratt & Whitney’s geared turbofan engines remain the primary drivers for current-gen engine demand, with production of these platforms expected to increase by 53 percent over the next two years.

"This creates significant opportunity for not only standard-quality titanium but also premium-quality titanium," Pike noted. Titanium is essential in engine applications, including compressor discs, turbine blades, and fasteners, and plays a crucial role in optimizing aircraft performance.

Another notable shift is the doubling effect seen in the demand for spares and new builds, as airlines keep older fleets in operation longer and maintenance cycles accelerate. Historically, spares represented 25 percent of material demand, but this figure could increase to 30-50 percent, driven by intensified MRO cycles.

Titanium's Strategic Role in Defense Markets

Titanium's utility extends into the defense sector, where geopolitical factors continue to fuel demand. As defense budgets surge—reaching a record $2.44 trillion globally in 2023, according to the Stockholm International Peace Research Institute—the metal is increasingly utilized in fighter jets, drones, and other high-performance military equipment. Sam Stiller, Howmet Aerospace's vice president of engineered structures, emphasized that titanium's lightweight and high-temperature resilience make it ideal for stealth applications and advanced drone programs. The F-35 fighter jet, a prime example, comprises 20 percent titanium by weight.

Challenges and Prospects Amid Global Supply Constraints

While titanium demand in aerospace and defense remains robust, panelists cautioned that constrained production rates and supply chain bottlenecks present challenges for manufacturers. Nonetheless, the defense industry’s demand, along with increased aerospace production rates, continues to underscore titanium’s long-term growth prospects in critical sectors.

Safran’s Second Quarter LEAP Engine Deliveries Decline Due to HPT Yield Issues

French aerospace manufacturer Safran reported a significant drop in LEAP engine deliveries in the second quarter and first half of 2024, attributing the decrease to issues with high-pressure turbine (HPT) blade yields from its suppliers. This shortfall has impacted commitments to major airframe customers, Boeing and Airbus.

CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, delivered 664 LEAP engines in the first half of 2024, a decline from 785 units in the same period last year. The second quarter saw a particularly steep drop, with deliveries falling by 29.1% to 297 units. Safran's CEO, Olivier Andries, noted that the lower yield of HPT blades supplied to GE in April and May was a primary factor in this reduction. Although yields have slightly recovered, they have not yet returned to normal levels.

Howmet Aerospace, the primary supplier of HPT blades, has ramped up production by 40% in recent months and claims to be operating at or above capacity with current yields. Despite this, Safran has revised its full-year LEAP delivery guidance to flat to 5% growth over 2023, down from an earlier forecast of 10-15% in April and 20-25% at the start of the year. This revision is largely due to reduced deliveries of LEAP-1B engines to Boeing, stemming from decreased 737 MAX production, and ongoing HPT yield issues affecting Airbus more severely.

Despite these challenges, Safran expects to increase LEAP engine deliveries in the second half of the year, with improved HPT yields and a focus on supporting Airbus. Safran is carefully managing the situation to serve both airframers and airliners effectively.

In the first half of 2024, Safran's revenue from its propulsion segment rose by 13.8% year-on-year to $6.46 billion, driven by a 29.9% increase in civil aftermarket revenues. This growth was primarily due to strong demand for CFM56 spare parts and LEAP service contracts. Additionally, deliveries of CFM56 engines increased by four units to 28, high thrust engines rose by eight units to 91, while M88 military engine deliveries fell to 14 units from 31 in the same period last year.

Safran's equipment and defense revenues also increased by 26% to $5.17 billion, driven by higher original equipment sales, including nacelles and landing gear sets for the A320, A330, and 787 programs. The strong civil aftermarket demand has prompted Safran to raise its revenue guidance for that segment to "upper mid-20s" growth, from around 20% previously.