GE Aerospace Improves Supply Chain and Boosts Airbus Engine Deliveries

GE Aerospace Turns the Tide on Supply Chain Woes, Boosting Airbus Deliveries

The global aviation industry has been navigating turbulent skies in recent years, largely due to persistent supply chain disruptions that began in the wake of the COVID-19 pandemic. These constraints have created significant headwinds for aircraft manufacturers and airlines alike, leading to production delays and a scarcity of spare parts. For European aerospace giant Airbus, a primary bottleneck has been the timely delivery of jet engines, a critical component for its popular A320neo family of aircraft. However, recent developments from GE Aerospace, a key engine supplier, signal a potential shift in this challenging environment. The company’s focused efforts to untangle its Supply-Chain are beginning to yield tangible results, offering a glimmer of hope for a more stable production landscape.

At the heart of this issue is CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, which produces the LEAP engine. These engines are a popular option for the Airbus A320neo and the exclusive powerplant for the Boeing 737 MAX. Production difficulties within the CFM partnership have had a cascading effect, impacting Airbus’s ability to meet its delivery targets and, consequently, the expansion plans of Airlines around the world. The financial repercussions of these delays are substantial, affecting the entire aviation ecosystem. Now, with GE Aerospace implementing strategic initiatives to overcome these hurdles, the industry is watching closely to see if this marks a turning point in the post-pandemic recovery.

Strategic Initiatives and Operational Overhauls

In response to the ongoing supply chain pressures, GE Aerospace has deployed a proprietary lean operating model known as “FLIGHT DECK.” This internal strategy is designed to drive sustainable performance and foster measurable improvements by embedding lean principles and tools throughout the company’s operations. The initiative focuses on creating a more resilient and efficient supply chain by working closely with supplier partners to identify and eliminate bottlenecks. The early results of this approach are promising, demonstrating that a systematic and collaborative effort can indeed make a significant impact on complex Manufacturing challenges.

The “FLIGHT DECK” model has already produced concrete results. For instance, at GE’s facility in Pune, India, the lead time for certain LEAP engine components has been reduced by 50%. This is a testament to the effectiveness of the lean principles being applied. Furthermore, the company has reported a substantial increase in materials received from key suppliers, with a 35% rise compared to the previous year. This improvement in the flow of materials is a critical step in stabilizing production and ensuring a more predictable output of finished engines.

Perhaps one of the most significant indicators of progress is the improved reliability of GE’s suppliers. According to the company, critical suppliers are now delivering to their commitments 95% of the time, a rate that has doubled from a year ago. This increased predictability is a cornerstone of a healthy supply chain and is essential for ramping up production to meet the high demand from customers like Airbus. As GE Aerospace continues to refine its “FLIGHT DECK” model, these operational gains are expected to become more widespread, further strengthening the company’s ability to navigate the complexities of the global supply chain.

“We knew that we were going to have a slower start than any of us would have wanted in 2025, but… in terms of LEAP deliveries, growing in the 15-20% range continues to be what we believe we will do in 2025. It’s all about the supply chain dynamics… with the supply base, we’re really encouraged by the sequential improvement that we’ve seen in our deliveries from our critical suppliers.”, Larry Culp, GE Aerospace CEO (May 2025)

The Ripple Effect: Improved Deliveries and Financial Performance

The operational improvements driven by GE Aerospace’s strategic initiatives are having a direct and positive impact on its ability to deliver engines to Airbus. GE Aerospace CEO Larry Culp recently announced that the company made significant progress in catching up on delayed jet engine deliveries to Airbus during the third quarter of 2025. This development is a welcome sign for Airbus, which has been grappling with engine shortages as it seeks to ramp up production of its narrowbody aircraft.

The numbers support this optimistic outlook. GE Aerospace reported a 40% year-over-year increase in the production of its LEAP engines in the third quarter of 2025. Looking at the full year, the company now anticipates a growth of over 20% in LEAP engine deliveries, an upward revision from the previously projected 15-20% range. This acceleration in production is a clear indication that the company’s supply chain fixes are taking hold and translating into a higher output of finished products.

This positive momentum is also reflected in GE Aerospace’s strong financial performance. The company reported a 26% increase in adjusted revenue to $11.3 billion for the third quarter of 2025. Adjusted earnings per share saw a 44% rise to $1.66, and free cash flow grew by 30% to $2.4 billion. Buoyed by these strong year-to-date results, GE Aerospace has raised its full-year financial guidance, signaling confidence in its ability to sustain this performance through the end of the year and beyond.

Conclusion: A Path to Stability and Future Growth

The progress made by GE Aerospace in resolving its supply chain issues offers a beacon of hope for the entire aviation industry. By implementing its “FLIGHT DECK” operating model and fostering closer collaboration with its suppliers, the company has demonstrated a clear path toward stabilizing its production and catching up on crucial engine deliveries to Airbus. This not only benefits the two aerospace giants but also has a positive ripple effect on airlines and the traveling public, who stand to gain from a more predictable and robust aircraft supply chain.

Looking ahead, the lessons learned from this period of disruption will likely shape the future of aerospace manufacturing. The emphasis on lean principles, supplier collaboration, and operational resilience will become even more critical as the industry continues to navigate a complex and ever-changing global landscape. While challenges may still lie ahead, the proactive and strategic approach taken by GE Aerospace serves as a powerful example of how to turn adversity into an opportunity for innovation and growth.

FAQ

Question: What is the “FLIGHT DECK” initiative?
Answer: “FLIGHT DECK” is GE Aerospace’s proprietary lean operating model designed to create sustainable performance and measurable improvements by integrating lean principles and tools across the company.

Question: How have GE’s supply chain improvements affected Airbus?
Answer: The improvements have allowed GE Aerospace to make progress in catching up on delayed jet engine deliveries to Airbus, particularly in the third quarter of 2025.

Question: What are the key performance indicators of GE’s supply chain recovery?
Answer: Key indicators include a 40% year-over-year increase in LEAP engine production in Q3 2025, a 35% increase in materials received from key suppliers, and a 95% on-time delivery rate from critical suppliers.

Sources

• Reuters