“We continue to expect approximately 70% of LEAP shop visits to be performed by CFM, split equally between our JV partner, Safran and us.”

In context

“mately triple by the end of the decade with internal shop visits growing roughly at the same pace. Beyond revenue, we are focused on improving the profitability of services as the program matures. Touching on a couple of ways we are improving performance. First, we expect external shop visits to grow from 10% of the total in '24 to 15% in '25 to 30% by the end of the decade. This increased volume drives spare part sales and offers a mix benefit. Second, we expect to continue benefiting from catalog price increases. More importantly, we have significantly improved pricing in new service contract as we move past launch. While these increases take time to materialize in the financials, higher shop visit pricing combined with improved time on wing will support improved services profitability. We continue to expect approximately 70% of LEAP shop visits to be performed by CFM, split equally between our JV partner, Safran and us. To further reduce shop visit cost, we are investing in repair technology, which typically costs roughly 50% less than new parts. This offers customer significant economic benefit, while also reducing turnaround time as we do not have to wait for new material. Year-to-date, we have developed over 200 new repairs for LEAP and 1,000 repairs across the commercial engines business. Our goal is to more than double the number of LEAP specific repairs by '28. For context, we've developed nearly 3,000 repairs over the lifetime of the GE90 program, and we are targeting a similar number for LEAP at maturity. These actions give us confidence that we can navigate the impact from CFM56 retirement and that LEAP will not only equal CFM56 profit by the end of the decade, but the profitability levels will”