NEW YORK, Jan 20, 2026, 15:26 EST — Regular session.
- Shares of GE Aerospace slipped 3.3% to $314.39 in afternoon trading
- IATA and GE-Safran’s CFM have extended their engine-maintenance competition agreement through February 2033
- Investors are zeroing in on the January 22 results to gauge the latest on services demand and supply bottlenecks
Shares of GE Aerospace slipped 3.3% to close at $314.39 on Tuesday, hitting an intraday high of $323.72 and a low of $313.25. The stock dropped $10.73 compared to its previous closing price.
The slide happens as investors brace for the jet-engine maker’s quarterly report on Jan. 22. The company has set a webcast for its fourth-quarter 2025 earnings at 7:30 a.m. EST. Traders are hunting for signs on deliveries and the service segment, which drives cash flow when maintenance shops stay busy. (GE Aerospace)
Global airlines and CFM International have extended their engine maintenance deal until February 2033, IATA announced. “CFM should be commended for taking the lead with this important reform,” said IATA Director General Willie Walsh. Meanwhile, CFM President and CEO Gaël Méheust called the extension a “reaffirmation of our commitment to a competitive open aftermarket for CFM products.” The pact focuses on MRO — maintenance, repair and overhaul — with provisions on technical manuals, warranty policies, and independent repair access. IATA noted a study estimating that extra engine leasing and maintenance costs will hit $5.7 billion in 2025. CFM, a 50-50 joint venture between GE Aerospace and France’s Safran, supplies engines for Boeing’s 737 and rivals RTX’s Pratt & Whitney on Airbus’s A320 family. (IATA)
GE’s drop mirrored a wider risk-off mood on Wall Street, sparked by fresh tariff warnings from U.S. President Donald Trump that unsettled investors. Charlie Ripley, senior investment strategist at Allianz Investment Management, called it “more of a contained version of what we saw around Liberation Day,” summing up the market’s response. (Reuters)
For GE, the maintenance pact is a double-edged sword. A broader repair network helps airlines tackle backlogs and keep planes airborne, while highlighting the persistent tightness in the engine and parts market — a clear sign of ongoing demand for shop visits and spare parts.
Airlines are also stepping up pressure on aftermarket terms, sparking what could turn into a pricing battle in a sector where engine manufacturers earn most of their profits post-sale.
The immediate risk is straightforward: earnings. If GE’s results or guidance fall short, or if it signals new bottlenecks in parts or shop capacity, the stock could remain volatile despite steady long-term demand.
Investors will also be alert for any changes in comments about supply bottlenecks and repair speeds, following IATA’s cost estimate that underscored how long engines remain grounded.
GE Aerospace is set to release its report on Jan. 22, which will include management’s outlook for 2026.
