“Near term, orders continue to be strong, and we expect the strength in the first quarter to continue into the second quarter, with 95% of spare parts in backlog and all shop visits for the quarter already off wing.”

In context

“start to the year, we are trending towards the high end of the range of low double-digit revenue growth; profit of $9.85 billion to $10.25 billion; EPS of $7.10 to $7.40; and free cash flow of $8 billion to $8.4 billion for total company. We are also maintaining segment guidance for both CES and DPT, with a similar trend towards the higher end. Our guidance is based on full-year departures growth of flat to low single digits and is underpinned by the following assumptions: fuel prices remain elevated above current levels through the third quarter and decrease to current levels by year-end; a near-term impact from fuel availability in certain geographical regions; a global reduction in GDP growth impacting air travel demand. This guidance does not contemplate a global recession unfolding. Near term, orders continue to be strong, and we expect the strength in the first quarter to continue into the second quarter, with 95% of spare parts in backlog and all shop visits for the quarter already off wing. As a result, we are expecting second-quarter services growth of high teens, above our full-year guide, and supporting total company year-over-year and sequential profit growth in the quarter. For the full year, we are now expecting services revenue up roughly $4 billion year over year, from approximately $3.5 billion expected previously, supporting our increase of profit and cash to the high end of the range. However, as we get into the second half, we are taking a more measured view given the evolving environment and have included the potential impact from deceleration in spare parts growth, lighter work scopes, delayed spare engine shipments, and reduced billings within our guidance. While the external environment remains uncertain, we are taking proactive actions, including managing di”