GE Aerospace LEAP engine deliveries surge on supply chain recovery

GE Aerospace LEAP engine

GE Aerospace LEAP engine deliveries surged in the third quarter as supply chain stability unlocked higher output. The engine maker delivered 511 LEAP units, a 40pc increase year on year. As a result, GE Aerospace lifted its full-year guidance for LEAP production growth above 20pc. The stronger trajectory for GE Aerospace LEAP engine deliveries underlines how quickly the narrowbody engine market is tightening again.

Supply-chain gains underpin LEAP production outlook

Improved throughput and yields at core suppliers sit behind stronger GE Aerospace LEAP engine deliveries. Suppliers shipped more than 95pc of committed volume for a third consecutive quarter. Therefore, GE Aerospace now expects more than 20pc shipment growth versus 2024, up from earlier guidance. Management also targets deliveries of 2,000 LEAP engines next year through its CFM International joint venture. This outlook closely tracks Boeing and Airbus narrowbody build plans for the 737 MAX and A320neo.

Aftermarket demand intensifies LEAP engine pressure

Meanwhile, surging MRO demand amplifies the impact of higher GE Aerospace LEAP engine deliveries. Airlines are flying older fleets longer as new aircraft deliveries slip, stretching engine maintenance schedules. At the same time, early-generation LEAP engines are entering first and second shop visits. Quarterly aftermarket revenue rose 28pc to $6.8bn, driven by complex widebody work and higher narrowbody volumes. Internal LEAP inductions increased 30pc, while external shop visits doubled, yet capacity still lags demand.

Despite strong earnings momentum, GE Aerospace warns that supply chain vulnerabilities could still disrupt engine deliveries. The company continues to expand its MRO network and parts availability to support future LEAP shop visits. However, management expects engines coming off wing for maintenance to rise by double digits next year. This imbalance between demand and repair capacity will shape utilization patterns for airlines and lessors.

The Metalnomist Commentary

GE Aerospace’s latest results confirm that LEAP remains the workhorse of global narrowbody growth, but also a bottleneck. For metals and component suppliers, sustained LEAP ramps and heavier MRO loads signal durable demand for high-temperature alloys. Investors should watch whether supply chain upgrades can keep pace with this cycle before the next downturn.

Safran Uni Tritech LEAP Engine Components Deal Strengthens India Aerospace Supply Chain

Uni Tritech

Safran Uni Tritech LEAP engine components partnership will add Indian cast aluminium parts production to Safran’s global propulsion supply chain. The French aerospace manufacturer and Indian firm Uni Tritech signed a memorandum of understanding to manufacture components for LEAP-1A and LEAP-1B engines.

Safran Uni Tritech LEAP engine components production will take place in Dharwad, India. The agreement brings Uni Tritech into Safran’s supply chain at a time when aircraft engine makers are working to increase output and reduce bottlenecks across qualified component production.

Safran Uni Tritech LEAP engine components cooperation is strategically important because LEAP engines power major narrowbody aircraft programmes. LEAP-1A engines are used on Airbus A320neo family aircraft, while LEAP-1B engines power Boeing 737 MAX aircraft.

The deal also shows how India is moving deeper into aerospace manufacturing. The country is no longer only a market for aircraft and engines. It is increasingly becoming part of the qualified supplier base for global aerospace programmes.

Cast Aluminium Parts Add Capacity to LEAP Supply Chain

The agreement focuses on cast aluminium parts for LEAP engines. These components are part of a wider engine supply chain that depends on strict quality control, repeatable manufacturing and long-term supplier qualification.

This matters because LEAP engine deliveries have been rising as Airbus and Boeing push narrowbody production higher. Engine manufacturers need more capacity across castings, forgings, machined parts, coatings, assemblies and spare components.

Safran reported stronger engine deliveries in the first quarter, with little to no immediate impact from the US-Israel war against Iran. That performance highlights resilient demand, but it also increases pressure on suppliers to keep pace with production schedules.

Adding Uni Tritech to the supply chain can support diversification. For aerospace companies, geographic diversity is increasingly valuable as they manage logistics risk, capacity constraints and customer delivery commitments.

India’s role is also important from a cost and industrial policy perspective. Local aerospace manufacturing can support skilled employment, supplier development and deeper integration with global aircraft programmes.

India Gains Position in Aerospace Propulsion Manufacturing

The Dharwad production plan strengthens India’s position in aerospace propulsion components. Engine parts require more demanding qualification than many general industrial castings, making this a meaningful step for the local supplier base.

For Uni Tritech, the partnership gives access to a high-value global engine platform. For Safran, it adds another qualified manufacturing route for components needed to support LEAP production and aftermarket demand.

The agreement fits a broader trend in aerospace. Engine makers are widening their supplier networks while increasing investment in regions that can offer scale, technical capability and long-term manufacturing support.

India has been attracting more aerospace supply-chain activity as global manufacturers look for alternatives and additions to traditional production hubs. Partnerships like this can help the country move from assembly and lower-tier fabrication into more specialised component manufacturing.

The strategic value will depend on execution. Uni Tritech must meet Safran’s quality, delivery and process requirements consistently as LEAP engine demand continues to rise.

If successful, the partnership could become a model for further Indian participation in propulsion supply chains. That would support India’s ambition to become a larger supplier to global aerospace and defence manufacturers.

The Metalnomist Commentary

Safran’s agreement with Uni Tritech is small in headline value but important in supply-chain direction. As LEAP production rises, qualified component capacity in India could become a stronger part of the global aerospace manufacturing network.

GE LEAP Engine Deliveries Set to Rise Again as Supply Chain Recovery Gains Traction

GE LEAP

GE LEAP engine deliveries are set to rise again in 2026 as supply chain recovery gains traction. GE Aerospace expects to ship 15pc more LEAP engines this year. That would take annual deliveries to about 2,072 units. As a result, GE LEAP engine deliveries are moving closer to the company’s 2,500-unit target for 2028.

The growth matters because the LEAP powers the core narrowbody fleets of Boeing and Airbus. The LEAP-1B serves the 737 MAX exclusively. The LEAP-1A remains a key option for the A320neo family. Therefore, GE LEAP engine deliveries remain central to global commercial aircraft output.

The 2025 base was already strong. GE shipped 1,802 LEAP engines last year, up 28pc from 2024. Fourth-quarter LEAP deliveries surged by 49pc to 727 units. Meanwhile, total commercial engine shipments rose 25pc to 2,386 units. That momentum gives the company a stronger platform for 2026 growth.

Aerospace Supply Chain Recovery Is Supporting Higher Engine Output

Aerospace supply chain recovery is now the main enabler behind GE’s delivery plan. The company increased material input from priority suppliers by 40pc in 2025. It also reported double-digit sequential throughput growth in the fourth quarter. Consequently, supplier improvement is now translating into higher engine output.

However, GE also signaled that this pace may not be easy to sustain. Management said the 2025 body of work put the business in position for another step forward. That effort included process improvement and capital expansion across the supply base. Therefore, 2026 performance will depend on whether suppliers can keep pace with airframer ramp-up targets.

The wider delivery mix should also improve. GE expects commercial engine shipments in 2026 to rise by the mid-to-high teens. That includes more widebody engines such as the GEnx and GE9x. As a result, growth is not limited to narrowbody demand alone.

Aerospace MRO Demand Remains Strong as Fleet Retirements Stay Low

Aerospace MRO demand remains a major earnings driver for GE Aerospace. Airlines continue flying older aircraft longer because new deliveries remain delayed. GE now expects only 2pc of the global fleet to retire in 2026. That is below its earlier estimate of 2-3pc. Therefore, shop visits and spare parts demand should remain elevated.

This service strength is already visible in financial performance. Full-year commercial services revenue rose 26pc to $25bn. Earnings from in-house engine maintenance also improved on the year. Meanwhile, total company profit rose 31pc to $10bn and revenue increased 18pc to nearly $46bn. That combination shows GE is benefiting from both production growth and aftermarket resilience.

Defense also added support, even with a softer fourth quarter. Defense engine shipments rose nearly 30pc in 2025 to 635 units. Fourth-quarter deliveries declined by 6.5pc, but the full-year trend stayed positive. Consequently, GE enters 2026 with strength across several engine markets.

The Metalnomist Commentary

GE’s outlook shows that aerospace growth now depends as much on materials flow as final assembly demand. The company appears better positioned than a year ago, but supplier discipline remains the real bottleneck. If input recovery holds, LEAP output and MRO earnings could both stay strong through 2026.

Safran LEAP Engine Deliveries Rise as Aerospace MRO Demand Stays Strong

Safran LEAP Engine

Safran LEAP engine deliveries rose sharply in the first quarter as the French aerospace group benefited from stronger narrowbody engine output and robust aftermarket activity. Safran delivered 520 LEAP engines in January-March, up 63% from 319 units a year earlier.

Safran LEAP engine deliveries are produced through CFM International, the company’s joint venture with GE Aerospace. The first-quarter result keeps CFM on track for its full-year delivery target of about 2,072 engines, based on expected growth of 15% over 2025.

Safran LEAP engine deliveries also show that narrowbody aircraft supply chains are improving, even as airlines and manufacturers remain exposed to engine durability, parts availability and material cost pressures.

The company said the Middle East war has had little to no operational impact so far. However, analysts questioned whether a longer conflict could eventually reduce air traffic, weaken airline finances or delay maintenance spending.

Aftermarket Strength Supports Propulsion Revenue

Safran’s aftermarket performance remained strong in the first quarter. Spare parts revenue rose by 29%, while services revenue increased by 43%.

This growth was driven by maintenance, repair and overhaul demand for both CFM56 and LEAP engines. Airlines continue to operate older fleets while waiting for new aircraft deliveries, supporting demand for engine shop visits, spare parts and repair work.

Safran said it has not seen any reduction in repair scope, shop visits or retirement trends. Chief executive Olivier Andries said the first half of the year should remain largely unaffected by the conflict.

The company maintained its full-year guidance. It expects low to mid-teen revenue growth, around 15% higher LEAP deliveries, mid-teen spare parts revenue growth and about 20% growth in services revenue.

Propulsion revenue reached €4.55bn in the first quarter. Services accounted for 64.5% of propulsion revenue at €2.9bn, while original equipment contributed €1.6bn.

That revenue mix matters for aerospace suppliers. Aftermarket activity provides stronger earnings visibility when new engine production remains constrained by materials, labour and qualified supplier capacity.

Cobalt and Tungsten Costs Highlight Engine Materials Risk

Safran noted significant price increases in raw materials such as cobalt and tungsten. These materials are critical to high-performance aerospace engine components.

Cobalt is used in superalloys that can withstand high temperatures inside jet engines. Tungsten supports hard metals, high-temperature alloys and precision tooling used across aerospace manufacturing.

The price pressure reflects wider supply-chain risk. Cobalt markets have been affected by the Democratic Republic of Congo’s export restrictions and quota system. Tungsten prices have also risen because of tight concentrate supply and restricted Chinese exports.

Safran said it is managing the cost increases and has buffers to absorb higher raw material prices. Still, the trend reinforces how engine production depends on stable access to strategic metals.

CFM is also preparing to introduce the upgraded “maverick” high-pressure turbine blade on the LEAP-1B around June-July. The upgraded blade was introduced on the LEAP-1A variant last year after US and EU certification.

Other equipment deliveries were mixed. A320neo nacelle output rose by one-third from a year earlier, while A320 landing gear sets, A330neo nacelles and A350 landing gear sets declined. Boeing 787 landing gear deliveries rose by 38% to 22 units.

The mixed performance shows that aerospace recovery remains uneven. Engine deliveries and aftermarket demand are improving, but nacelles, landing gear and late-stage aircraft systems still face different supply-chain pressures.

The Metalnomist Commentary

Safran’s quarter shows that aerospace profitability is increasingly tied to MRO depth and engine materials resilience. LEAP output is recovering, but cobalt, tungsten and high-temperature component supply will remain strategic pressure points as aircraft production ramps.

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 LEAP engine deliveries catch up with Airbus production plans

Safran LEAP engine

Safran LEAP engine deliveries are accelerating as the French aerospace manufacturer races to align output with Airbus’ build rates. Safran LEAP engine deliveries reached 511 units in the third quarter, up 40pc year on year, pushing total shipments for the first nine months to 1,240 units. As a result, Safran now expects full-year Safran LEAP engine deliveries to grow by more than 20pc over 2024, implying that annual volumes could comfortably exceed 1,688 units.

Safran LEAP engine deliveries underpin Airbus narrowbody ramp-up

Safran’s LEAP delivery surge is closely tracking Airbus’ recovery in A320 family output after earlier engine shortages curbed assemblies. Higher third-quarter engine availability allowed Airbus to step up A320 deliveries, while Safran simultaneously increased shipments of key structures such as landing gear and nacelles. Deliveries of A320 landing-gear sets rose to 166 units in the quarter, and A320neo nacelles climbed to 186, underscoring how Safran is scaling its integrated narrowbody footprint. Meanwhile, discussions between Safran and Airbus on rate 75 for 2026–27 confirm that both companies share a common view on higher long-term production rates and the need for stable LEAP supply.

Trade uncertainty remains a risk despite strong aftermarket tailwinds

However, Safran still faces a complex trade environment even as operational performance improves. Recent EU-US tariff arrangements and efforts to secure eligibility under the US-Mexico-Canada Agreement have reduced some customs-related risks, but flows between China and the US — and persistent section 232 tariffs on aluminium, steel and copper — remain key concerns for the group. At the same time, Safran’s services and spares business continues to deliver robust growth as airlines keep aircraft in service longer and shop visits intensify. As a result, Safran has raised its services revenue guidance to low-to-mid 20pc percentage growth, helping lift total third-quarter revenue by 18.3pc to €7.85bn and providing an important buffer against macro and trade headwinds.

The Metalnomist Commentary

Safran LEAP engine deliveries are emerging as a critical bottleneck solution for Airbus as both sides push toward higher narrowbody build rates. For the wider metals and aero-supply chain, the combination of rising LEAP volumes, strong aftermarket work and persistent trade frictions will keep demand firm for high-spec nickel alloys, titanium and precision forgings. Suppliers that can manage tariff exposure while reliably meeting OEM schedules are likely to secure long-term, higher-margin positions in this extended aerospace upcycle.

GE Aerospace Adjusts 2024 LEAP Engine Forecast Amid Supply Chain Struggles

GE Aerospace

GE Aerospace has revised its LEAP engine delivery forecast for 2024 for the third time this year, projecting a 10% decline compared to the 1,570 units delivered in 2023. This downturn reflects ongoing supply chain challenges and operational bottlenecks among downstream customers.

Year-to-Date LEAP Performance

As of Q3 2024, GE Aerospace has delivered 1,029 LEAP engines, a 12% decrease from the same period in 2023. The most significant impact occurred during Q2, when raw material shortages and reduced production rates at airframers slowed deliveries. Although Q3 shipments rebounded by 23% quarter-on-quarter to 365 units, they remained 6.2% below the previous year's figures.

Despite these setbacks, total commercial engine deliveries, including the LEAP, rose 25% sequentially in Q3 to 501 units, though they were down 3.7% year-on-year. GE Aerospace aims to ramp up LEAP deliveries in Q4, aided by continued shipments to Boeing, which recently resumed production after a five-week work stoppage affecting its 737 Max program.

Challenges and Solutions in LEAP Production

The LEAP-1B engine exclusively powers Boeing's 737 Max, while the LEAP-1A serves Airbus' A320neo family. Production of the latter remains constrained due to shortages of high-pressure turbine (HPT) blades. GE Aerospace is addressing this bottleneck with a newly designed HPT blade, which is simpler to manufacture. The blade has entered production and is expected to be certified in the coming weeks, with larger-scale deliveries set to begin in 2025.

Strong Financial Results Amid Production Hurdles

Despite reduced LEAP deliveries, GE Aerospace raised its full-year operating profit forecast for 2024 to $6.7 billion-$6.9 billion, up from $6.5 billion-$6.8 billion in July. The company attributes this to strong demand for maintenance, repair, and overhaul (MRO) services, particularly spare part sales, and improved product pricing.

Quarterly profits surged to $1.9 billion, a significant increase from $333 million a year earlier, primarily driven by asset sales following its separation from General Electric in April. Revenue for the quarter grew to $9.8 billion, compared to $9.3 billion in the prior year.

Defense Segment Performance

Deliveries for GE Aerospace's defense engines increased by 8% sequentially in Q3 to 94 units but remained flat year-on-year.

With supply chain improvements and innovative solutions like the new HPT blade on the horizon, GE Aerospace aims to stabilize LEAP production and meet rising demand in the years ahead.

Safran LEAP engine deliveries rise in H1 2025

Safran LEAP engine

Safran LEAP engine deliveries increased in the first half as production accelerated. As a result, Safran LEAP engine deliveries reached 729 units, up 10pc year on year. Meanwhile, the narrowbody market kept demand firm across Boeing 737 MAX and Airbus A320neo programs.

Production acceleration lifts Safran LEAP engine deliveries

Safran boosted output in the second quarter to support airlines and MRO partners. Q2 production rose 29pc versus Q1 and 38pc year on year. Therefore, the delivery cadence improved despite supply chain pressures in castings and forgings.

Aftermarket strength and airline orders support momentum

Safran reported stronger spare parts demand across LEAP and legacy CFM56 fleets. Notably, Ryanair ordered 30 LEAP-1B spare engines to support its 737 MAX fleet. Consequently, aftermarket revenue provided an additional tailwind to first-half results.

Safran broadened volumes beyond LEAP with high-thrust engines. First-half high-thrust deliveries rose to 107 units, up from 91 a year ago. However, M88 military engines slipped to 10, while CFM56 deliveries eased to 26.

The group posted solid top-line growth alongside delivery gains. First-half adjusted revenue reached €14.8bn, up 13.2pc year on year. In addition, second-quarter revenue edged up to €7.5bn from €7.3bn in Q1.

The Metalnomist Commentary

Airline network rebuilds and sustained A320neo and 737 MAX demand continue to anchor LEAP volumes. We expect LEAP spares and shop visits to lead margin mix while OEM output normalizes. Watch castings, combustor hardware, and rotor parts as pacing items for further rate increases.

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 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.

Boeing Restarts Third 737 Line at Renton Plant Amid Engine Delivery Challenges

Boeing has restarted the third production line for its 737 aircraft at its Renton plant, a move aimed at boosting output amidst ongoing supply chain disruptions. The decision comes as French aerospace manufacturer Safran reported a decrease in LEAP engine deliveries, which has impacted both Boeing and Airbus. Safran, which produces the LEAP engines through a joint venture with GE Aerospace called CFM International, has faced issues with the high-pressure turbine (HPT) blade supplier yield, affecting their commitments to airframer customers.

In the first half of 2024, CFM International delivered 664 LEAP engines, which is 121 less than the 785 engines delivered in the same period the previous year. The shortfall was particularly severe in the second quarter, with deliveries down by 29.1% to 297 units. Safran's CEO, Olivier Andries, attributed this decline to lower yields of HPT blades supplied to GE during April and May. Although the yield levels have slightly improved, they have not yet returned to normal.

Howmet Aerospace, the primary supplier of HPT blades, asserted that it has ramped up production by 40% in recent months and does not expect to limit LEAP-1A build rates. Despite this, Safran has revised its full-year LEAP delivery guidance downwards, now anticipating flat to 5% growth over 2023, a significant reduction from earlier forecasts of 10-15% in April and 20-25% at the start of the year. The downward revision is due to reduced deliveries of LEAP-1B engines to Boeing because of decreased 737 MAX output and the HPT situation. While the HPT issue mainly affects Airbus, Boeing has mitigated some impact through inventoried LEAP-1B engines.

Nevertheless, Safran expects to deliver more LEAP engines in the latter half of the year, with improved HPT yields and a focus on supporting Airbus. However, Safran continues to manage the situation carefully to serve both airframers and airliners.

Strong 1H aftermarket revenue

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 mainly due to the demand for CFM56 spare parts and LEAP service contracts. CFM56 deliveries increased by four units to 28 in the first half, high thrust engine deliveries rose by eight units to 91, while M88 military engine deliveries more than halved to 14 units from 31 in the same period last year.

Equipment and defense revenues increased by 26% to $5.17 billion, primarily driven by higher original equipment sales. Deliveries of nacelles and landing gear sets increased across the A320 and A330 programs, as well as 787 landing gear sets. The strong demand in the civil aftermarket prompted Safran to raise its revenue guidance for that segment to "upper mid-20s" growth, up from the previous estimate of around 20%.

GE Aerospace Engine Deliveries Rise as LEAP Shipments Support Aircraft Ramp-Up

GE Aerospace Engine

GE Aerospace engine deliveries rose sharply in the first quarter as the company increased commercial engine shipments and benefited from strong aerospace maintenance demand. Total engine deliveries climbed by 50% on the year to 640 units in January-March.

GE Aerospace engine deliveries were led by the LEAP engine, where shipments rose by 63% to 520 units. The LEAP is the sole engine for Boeing’s 737 MAX and one of the two engine options for Airbus’ A320neo family.

GE Aerospace engine deliveries helped offset weaker volumes from rival Pratt & Whitney, whose large commercial engine deliveries fell year on year. This matters because engine availability remains one of the biggest constraints on narrowbody aircraft production.

The result shows that aerospace demand remains strong, but the supply chain is still under pressure. Engine makers need more castings, forgings, rotating parts, powder metal components, superalloys, titanium parts and qualified spare capacity to meet aircraft build-rate targets.

LEAP Ramp-Up Offsets Pratt & Whitney Weakness

GE Aerospace attributed higher shipment volumes to better supplier performance. The company has been working to increase output of new engines and spare parts to support Boeing and Airbus production plans.

The company announced another $1bn supply-chain investment in March. About $100mn of that will support external suppliers and help them increase output capacity.

This investment is strategically important because commercial engine production depends on a deep, qualified supplier base. A single bottleneck in forgings, castings, coatings, disks, blades or precision machined parts can slow engine deliveries.

GE Aerospace competes with Pratt & Whitney on the Airbus A320neo programme. Pratt & Whitney’s delivery pressure has affected Airbus production planning, while GE’s stronger LEAP output gives aircraft manufacturers another source of support.

However, demand still exceeds available supply. GE Aerospace said supplier throughput rose by double digits, but spare parts delinquency increased by 70% from the end of 2024 because of material availability constraints.

That warning is important for metals and aerospace suppliers. Higher engine deliveries do not mean the supply chain is fully recovered. It means suppliers are improving from a constrained base while demand continues to rise faster than available capacity.

MRO Demand Stays Strong but Fuel Risk Emerges

Aerospace MRO demand remained robust in the first quarter. LEAP internal shop visits rose by more than 50% from a year earlier, while spare parts sales increased by more than 25%.

The aftermarket outlook remains strong because LEAP work scopes are increasing and older-generation CFM56 and GE90 engines still face major shop-visit cycles. Many of these engines are approaching their first or second major maintenance events.

This creates a powerful revenue base for GE Aerospace. Even when new engine deliveries face constraints, airlines still need repairs, overhauls, spare parts and component replacement to keep fleets flying.

However, the Middle East war has created a new risk for airline economics. Higher oil prices and tighter jet fuel supply could pressure airline finances and delay some aftermarket work in the near term.

GE Aerospace lowered its full-year forecast for global commercial flight growth to flat-to-low-single-digit growth. It had previously expected mid-single-digit growth.

The company still maintained its 2026 earnings guidance. It said that without the war, it likely would have raised its forecasts.

Defense and power-generation engine deliveries also increased. Quarterly shipments for defence and aeroderivative applications rose by 24% to 185 units, adding another source of industrial demand for high-performance engine materials.

GE Aerospace’s quarterly revenue rose by 25% to $12.4bn, while profit fell by 2.1% to $2.2bn. The figures show that demand remains strong, but supply-chain cost, material constraints and geopolitical pressure continue to shape margins.

The Metalnomist Commentary

GE Aerospace’s first-quarter results show that aircraft production recovery is now a supplier-capacity story. LEAP shipments are improving, but material availability and spare parts delays prove that aerospace metals, forgings and MRO capacity remain strategic bottlenecks.

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’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.

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.

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.

GE Aerospace Cuts LEAP Forecast Again as 2Q Sales Drop

In a challenging turn of events, GE Aerospace has once again lowered its production forecast for the LEAP engine, marking the second downward adjustment this year. The company, headquartered in Ohio, now projects a flat to 5% growth in LEAP production for the remainder of the year, a significant decrease from the 10-15% forecast in April and the original 20-25% target set at the beginning of the year.

Commercial engine deliveries in the second quarter saw a notable decline, dropping 26% year-over-year to 402 units. Specifically, sales of LEAP engines, produced in collaboration with Safran Aircraft Engines through their joint venture CFM International, fell by 29% to 297 units. These engines are critical to Boeing's 737 MAX program and Airbus' A320 family of narrow-body jets.

GE Aerospace attributed the reduction in sales to ongoing raw material shortages and bottlenecks at 15 supplier sites. Additionally, slower production rates from airframers have compounded these supply chain issues, leading to further disruptions.

Industry experts have raised alarms about the fragile state of aerospace supply chains, which have struggled to meet the surging demand for air travel post-COVID-19 pandemic. To mitigate these challenges, GE Aerospace is expanding its manufacturing capacity and boosting output from its domestic suppliers.

Despite these hurdles, commercial engine orders in the second quarter rose by 23% year-over-year to 808 units, with LEAP orders increasing by 33% to 615. However, the defense segment faced significant setbacks, with engine deliveries plummeting 62% to 87 units and orders dropping 83% to 62 units, largely due to timing issues.

On a brighter note, GE Aerospace has increased its full-year earnings guidance, driven by robust demand for its aftermarket services, which account for over two-thirds of its revenue. The company now anticipates an operating profit of $6.5 billion to $6.8 billion for 2024, up from the April forecast of $6.2 billion to $6.6 billion.

Maintenance, repair, and overhaul (MRO) services saw a surge in orders, growing by over 30% in the second quarter. To enhance efficiency, GE Aerospace plans to invest $1 billion in its MRO facilities, aiming to reduce turnaround times by 30% from 2023 levels. Notably, turnaround times for LEAP shop visits improved to 86 days from 100 days a year earlier.

Despite these operational successes, GE Aerospace's profit for the second quarter dipped by 4% to $1.4 billion, while revenues increased by 4% to $9 billion.

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 Rare Earth Stockpiling Adds Resilience to Aerospace Supply Chains

Safran Aerosystems

Safran rare earth stockpiling is becoming a key part of the company’s aerospace supply chain resilience strategy. The French engine maker said it is building rare earth inventories to reduce disruption risk. It is also working on alternative supply chains as geopolitical pressure grows. As a result, Safran rare earth stockpiling now sits alongside production expansion as a core industrial priority.

This matters because raw materials remain a bottleneck even as the aerospace supply chain improves. Safran said forging and casting still constrain output. Those upstream gaps can slow engine production even when demand stays strong. Therefore, aerospace supply chain resilience now depends as much on materials planning as on assembly efficiency.

Turbine Blade Casting Investment Targets the Upstream Bottleneck

Turbine blade casting investment is Safran’s direct answer to that constraint. The company is investing in its own casting facility and expanding forging capability. Management said Safran is the only engine manufacturer with in-house forging capacity. That gives the group more control over one of the hardest parts of the supply chain.

The new turbine casting facility in La Janais, Rennes will start operating in 2027. It will produce cast blades for M88 military engines and LEAP engines. That makes the investment strategically important for both defense and commercial aerospace. Consequently, turbine blade casting investment will support higher output across multiple engine programs.

Safran rare earth stockpiling fits the same logic. The company does not want to become a rare earth producer. However, it does want stronger protection against supply interruptions in materials that have become politically sensitive. As a result, Safran rare earth stockpiling is a defensive industrial move rather than a resource play.

LEAP Engine Deliveries Rise as Aftermarket Demand Stays Strong

LEAP engine deliveries are also moving higher, which explains why Safran is investing so aggressively upstream. The company delivered 1,802 LEAP engines in 2025, up 28pc from 2024. It expects another 15pc increase in 2026 to around 2,072 units. Therefore, supply chain pressure will likely stay intense as Airbus and Boeing push for higher build rates.

Safran is aiming for around 2,600 LEAP deliveries a year by 2028. That target will require more stable access to forgings, castings, and sensitive raw materials. Meanwhile, the aftermarket remains strong enough to add more pressure on the system. Spare parts revenue is expected to rise about 15pc in 2026, while services revenue should increase around 20pc.

The aftermarket strength comes from delayed aircraft retirements and more shop visits for both CFM56 and LEAP engines. That means Safran must support both new engine growth and a busy installed fleet at the same time. Consequently, aerospace supply chain resilience is no longer optional. It is essential for maintaining production and service performance together.

The Metalnomist Commentary

Safran’s update shows that aerospace growth is now an upstream materials story as much as a delivery story. Rare earth stockpiling and casting investment are both signs of the same reality. Engine makers can no longer rely on fragile external supply chains if they want to meet ambitious aircraft and aftermarket targets.

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.