French aerospace manufacturer Safran expects LEAP engine deliveries to increase by 15-20pc year on year in 2025 as it strives to meet demand for Airbus' A320neo and Boeing's 737 MAX, and expects milder year-on-year growth in aftermarket revenues, the company said in its capital markets day yesterday.
The headline delivery recovery figure is relatively modest considering that CFM is forecasting an approximate 10pc decline in 2024 deliveries from the 1,570 units delivered in 2023. Therefore, assuming 5-10pc growth over 2023 figures, that would put LEAP deliveries in 2025 between 1,649 and 1,727 units.
The LEAP engine is manufactured by CFM International, a joint venture between Safran Aircraft Engines and the US' GE Aerospace. It exclusively powers Boeing's flagship narrowbody 737 Max aircraft, and competes with Pratt & Whitney's PW1100G-JM to sit on the wing of Airbus's A320neo narrowbody jet.
CFM deliveries in 2024 have been mired by 737 Max production curtailments at Boeing, and high-pressure turbine blade yield issues on the Airbus engine variant.
The aerospace supply chain is improving but will not fully recover in 2025, Safran said in October, and the company yesterday reiterated that the main risk to its 2025 guidance is supply chain production capability.
Safran expects lower revenue growth for its civil aftermarket segment next year. Spare parts revenue is expected to increase in the mid-to-high single-digit percentages, and services revenue up in the mid-teens. For comparison, overall civil aftermarket revenues guidance for 2024 is an increase of mid-twenties, according to reaffirmed guidance issued yesterday. Safran split its aftermarket revenue into spare parts and services from 2025 owing to an increasing share of service contracts.
