Boeing and Airbus Need More Engines. GE and RTX Are Racing to Supply Them
Key takeaways
- GE and RTX are racing to supply engines to Boeing and Airbus, with GE's backlog worth over $210 billion and Pratt & Whitney's commercial aftermarket sales jumping 25% in the second quarter.
- Boeing and Airbus need to average 90 deliveries a month for the rest of 2026 to reach their annual targets
- GE's backlog worth over $210 billion
- Pratt & Whitney's commercial aftermarket sales jumped 25% in the second quarter
What happened
Boeing and Airbus are struggling to meet their annual delivery targets due to a shortage of engines, prompting GE and RTX to ramp up engine deliveries.
Why it matters
The engine shortage is a major challenge for the aerospace industry, with Boeing and Airbus needing to average 90 deliveries a month for the rest of 2026 to reach their annual targets. GE and RTX are well-positioned to benefit from the increased demand for engines.
Short-term and longer-term
Short-term. GE and RTX are well-positioned to benefit from the increased demand for engines, with GE's backlog worth over $210 billion and Pratt & Whitney's commercial aftermarket sales jumping 25% in the second quarter.
Longer-term. The engine shortage is a major challenge for the aerospace industry, with Boeing and Airbus needing to average 90 deliveries a month for the rest of 2026 to reach their annual targets.