“As we get into 2027, we have already assumed in our prior outlook that retirements increase to 3% to 4%.”

In context

“26 and 2027? Rahul Ghai: Yeah. So, Sheila, I think we touched on a couple of things here. As you said, we see good visibility into the second quarter. We have said—Larry and I both said—95% of the spare parts for the second quarter are in backlog, and all the engines that we need to work on for the second quarter are in the shop. Larry also provided a full-year shop visit view that we are about a third oversubscribed right now from what is already off wing and what will come off wing in the second and the third quarter. So that gives us confidence around 2026. Now as we go to 2027 and where the risks may come, you touched on retirement rates. Keep in mind that the retirement rates that we have assumed for 2026 with CFM56 are in the 2% range, and what we saw in the first quarter is sub-1%. As we get into 2027, we have already assumed in our prior outlook that retirements increase to 3% to 4%. So we have factored in a certain increase in retirements. We have not seen that. We are not seeing anything concerning just yet. Our order trends are holding. But it is more about what is unknown, and that is a little bit of caution, prudence—whatever words you want to use—for the second half of the year. Time will play out and give us more visibility into 2027. Overall, the business is strong, the franchise is strong, and I think we should be able to navigate anything that evolves over the next few months. Operator: Our next question comes from Kenneth George Herbert with RBC Capital Markets. Kenneth George Herbert: Yeah. Hi. Good morning, Larry and Rahul. Really strong spare parts orders in the first quarter. I am just curious—especially your comment on March strengthening from the firs”