MTU Aero Engines is expecting continuing strong demand for powerplant maintenance, with the persisting Pratt & Whitney GTF problems having a significant influence on the company’s financial performance.
GTF servicing accounted for around 40% of MTU’s commercial maintenance last year, and helped drive an 18% rise – to nearly €6 billion ($7 billion) – in adjusted revenues for the sector.
The company’s chief financial officer, Katja Garcia Vila, says the revenue rise “far exceeded our expectations”.
MTU says it benefited not only from the GTF and International Aero Engines V2500 work but also the GE Aerospace GE90 and CF6-80.
Garcia Vila adds that the company succeeded in “significantly” reducing turnaround times.
Adjusted earnings for commercial maintenance were up 9% to €478 million last year.
The company has an 18% share of the GTF programme. MTU more than doubled its free cash flow, despite the impact of the GTF situation, says Garcia Vila, attributing this performance to “stringent” cash management.
MTU says the GTF fleet-management plan remains “on track”. It expects the GTF revenue share in commercial maintenance to be around 40-45% this year, and sees increasing business for the GE90 which powers Boeing 777-300ERs and 777Fs.
While the entry into service for the 777X – and its GE9X engine – is delayed until 2027, MTU predicts increased new engine deliveries, including further ramp-up of GTF and GEnx engines as a result of aircraft production rate hikes.
It has delivered the first engine modules for the GTF Advantage powerplant, entry into service of which is expected this year.
The company sees GTF spares volume increasing while V2500 spares supply will also benefit from “intense utilisation” of older A320s.
MTU’s adjusted revenues for its commercial engine business rose by 18% last year to €2.3 billion, and adjusted earnings for its overall OEM activity rose 43% to €873 million.
