New York, Jan 20, 2026, 18:21 (EST) — After-hours
- Shares of GE Aerospace dropped roughly 4% during Tuesday’s session
- Airlines are honing in again on engine-maintenance costs and capacity following the extension of the IATA-CFM pact
- Investors are shifting focus to GE Aerospace’s quarterly update expected later this week
Shares of GE Aerospace (NYSE: GE) dropped roughly 4% on Tuesday, ending the day at $312.34 following a range between $323.72 and $309.97.
Investors are already shifting focus away from today’s action, zeroing in on the company’s upcoming update. Guidance and cash conversion are expected to drive the stock’s next move.
A deeper challenge lies beneath: aftermarket demand versus the capacity to repair and sell engines. “Aftermarket” refers to the parts-and-repair sector that kicks in once an engine is operational, typically offering higher margins than new equipment sales.
On Tuesday, IATA announced it had extended a pro-competitive agreement on engine maintenance with CFM International until February 2033, bringing costs and capacity issues back into focus. “Airlines have long struggled with the aftermarket business practices of manufacturers, which have limited competition and resulted in high costs for airlines,” said IATA Director General Willie Walsh. (IATA)
The broader market dragged stocks down. U.S. shares suffered their biggest one-day fall in three months after President Donald Trump announced new tariffs targeting several European countries, set to kick in Feb. 1 and increase again by June 1 if negotiations fall through, according to Reuters. Jamie Cox, managing partner at Harris Financial Group, said he wasn’t ready to call the tariff dispute a trigger for a broader equities correction. (Reuters)
CFM, the joint venture between GE Aerospace and France’s Safran, supplies engines for every Boeing 737. It also faces off against RTX-owned Pratt & Whitney on Airbus’s A320 family, Reuters reports. CFM President Gaël Méheust emphasized the group’s focus on competition and said, “CFM places customers at the heart of its DNA.” (Reuters)
In a company article released Tuesday, GE Aerospace spotlighted AI-driven “white light robot” inspectors designed to accelerate inspections in maintenance, repair, and overhaul shops. “The goal is to mount a part for inspection, hit ‘go,’” explained Sam Blazek, a GE Aerospace services technology leader working on the system. (GE Aerospace)
GE Aerospace is gearing up for its next major event: the fourth-quarter 2025 earnings webcast set for Jan. 22 at 7:30 a.m. EST, per its investor relations calendar. (GE Aerospace)
Traders are tuned in for any change in the company’s tone on shop capacity, spare-parts availability, and the speed at which engines move through the system. The market also reacts to updates on deliveries linked to Boeing and Airbus build rates, along with any adjustments to service pricing.
Behind the scenes, the engine supply chain is caught between backing airlines’ active fleets and meeting the demands of new aircraft production. This push and pull becomes clear in delivery schedules, shop-visit numbers, and fluctuating cash flows from quarter to quarter.
That said, the situation isn’t one-sided. Should parts shortages persist or newer engines suffer unforeseen wear leading to increased removals, GE might confront rising expenses and strained customer relations — despite ongoing demand.
All eyes now turn to Jan. 22, when the company will release its outlook. Investors want to see if the maintenance backlog is actually easing or just shifting elsewhere in the system.
