GE Aerospace CEO Defends Engine Pricing as Airlines Push Back on Rising Costs

GE Aerospace’s leadership has pushed back against mounting criticism from airlines that engine manufacturers are exerting excessive pricing power during a period of prolonged supply-chain disruption. The debate has intensified as airlines face soaring maintenance expenses, longer repair cycles, and limited access to spare engines, all of which have added pressure to already stretched operations.

Airline executives and industry bodies argue that engine makers benefit from a constrained market, allowing them to command higher prices for maintenance, repairs, and replacement parts. Repair turnaround times for modern jet engines are now significantly longer than before the pandemic, forcing airlines to keep aircraft grounded or operate aging fleets longer than planned. These disruptions have increased costs and reduced capacity at a time when global travel demand remains strong.

GE Aerospace Chief Executive Larry Culp rejected the idea that pricing reflects market dominance. Instead, he emphasized the scale of long-term investment required to design, certify, and support advanced aircraft engines over decades. According to Culp, engine pricing must account for billions of dollars spent annually on research, development, safety upgrades, and global maintenance infrastructure that underpin fleet reliability.

Durability Upgrades and Aftermarket Strength

As tensions rise, GE Aerospace is moving to address some airline concerns by rolling out durability improvements to its LEAP engine family, produced through its CFM International joint venture. Regulators have approved enhancements to the LEAP-1A engine used on Airbus A320neo aircraft, with similar updates planned for the LEAP-1B engines that power Boeing’s 737 MAX jets.

These upgrades are designed to extend engine life, particularly in harsh operating environments, and reduce the frequency of shop visits over time. The company maintains that such improvements demonstrate a commitment to lowering long-term ownership costs rather than simply raising prices.

Aftermarket services, including maintenance, repair, and spare parts, remain the backbone of GE Aerospace’s commercial business, generating more than two-thirds of its engine-related revenue. Demand in this segment remains strong as airlines prioritize keeping existing fleets operational while new aircraft deliveries remain delayed.

That strength has translated into a positive financial outlook. GE Aerospace recently projected earnings for 2026 above market expectations, citing sustained demand for high-margin aftermarket services and continued recovery in global aviation activity.

A Broader Industry Dispute Takes Shape

The pricing debate reflects wider structural tensions across the aerospace industry. Airlines are juggling higher fuel costs, labor shortages, inflation, and delayed aircraft deliveries, while manufacturers face rising material costs, workforce constraints, and regulatory demands.

Some carriers have also raised concerns that tariffs and broader economic pressures are being passed down disproportionately through maintenance pricing. GE Aerospace has acknowledged these challenges but insists it is using productivity gains, design efficiencies, and operational discipline to manage costs rather than relying solely on price increases.

Culp has also dismissed claims that engine makers must choose between supporting existing fleets and producing new engines. With airlines operating mixed fleets of older and newer aircraft, manufacturers are being asked to do both simultaneously, a balancing act that has become increasingly complex.

As global aviation continues its uneven recovery, the dispute underscores the fragile relationship between airlines and suppliers. While both sides depend on one another, the question of how costs and risks are shared is likely to remain a point of contention well into the next phase of industry growth.

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