CFM International is expecting to produce an average of 10 Leap-1B engines – the powerplant for the Boeing 737 Max – per week over the course of 2020, out of a total annual Leap production of 1,400.
The forecast has been disclosed by CFM partner Safran in its full-year financial figures, which assumes that 737 Max deliveries will restart in mid-2020 following the production halt in January.
Safran says it has implemented a hiring freeze, cost-saving efforts, and a reduction capital expenditure to help offset the impact of the Max situation.
The Max crisis was reflected in powerplant order activity, with Leap orders and commitments reaching 1,968 last year compared with 3,211 for 2018.
Safran says production levels over 2019 were nevertheless “stable”. Although Leap production rose to 1,736 engines, combined Leap and CFM56 deliveries were down slightly – by 35 engines – at 2,127, reflecting a 63% decline in CFM56 output to 391 as well as the stagnant Max lines.
The leap backlog at the end of 2019 stood at 15,614, a figure virtually unchanged from the previous 15,620.
Despite the Max grounding’s effect on Leap-1B deliveries, Safran’s original equipment revenues for aerospace propulsion rose by 13.5% while service revenues were up 14.2%. Continuous higher spares sales for CFM56 engines contributed to a 9.9% hike in civil aftermarket revenues.
Recurring operating income was up by more than 22% to €2.48 billion, with profitability benefiting from civil aftermarket growth and higher military contributions.