GE Aerospace said it is cashing in on a shortage of new civil jets as it raised its profit forecast for the current year.
Shares rose 2.5% in premarket trading as the company stated that aircraft shortages and high travel demand are driving up maintenance expenses as airlines keep older planes flying.
The company now expects annual adjusted profit between $3.95 and $4.20 per share after reporting a second-quarter adjusted profit of $1.20 per share, up from $0.74 last year.
Adjusted second-quarter revenue rose 4% to $8.22 billion.
Larry Culp, chief executive, highlighted actions to meet customer demand and manage supply constraints, adding that CFM International, GE's joint venture with Safran, has a strong position in the jet engine market.
"We are accelerating our actions and leveraging Flight Deck to unlock supply constraints and fully meet customer demand."