“We expect inputs to increase again in the fourth quarter, supporting a sequential step-up in output.”

In context

“gine output increasing 22% quarter-over-quarter, including commercial up 25% and defense up 8%. We also grew spare parts sales sequentially, supporting shop visits completed by our third-party network. As we've discussed over the last nine months, we're using flight deck to unlock key constraints, increased material inputs and drive sustainable improvements. We're working hand-in-hand with suppliers, and we're grateful for their strengthening partnerships. As a result of that work, a key subset of priority supplier sites increased output 18% in the third quarter, supporting our deliveries. As one example, a joint Kaizen with one supplier in the second quarter led to a double-digit improvement in material receipts in the third quarter, demonstrating that these efforts are yielding results. We expect inputs to increase again in the fourth quarter, supporting a sequential step-up in output. We're also making progress on LEAP durability with the 1A durability kit, including our upgraded HPT blade, and we're expecting it to be certified in the coming weeks. The new HPT blade is easier to manufacture, which will also help increase output. Combined with the three durability enhancements that are currently performing well in the field, we expect this will give LEAP a 2.5x improvement in time on wing, in line with current CFM56 levels. With LEAP's fleet size projected to double by 2030, we're expanding capacity to support aftermarket growth. We're preparing for this growth in three complementary ways to improve shop visit output and reduce turnaround times. First, we're leveraging FLIGHT DECK to eliminate waste, to increase capacity and reduce TAT. At our MRO facility in Selma, Br”