“We think that will begin to return to a more normal environment through the back half, going into 2027, clearly, at a more robust level.”

In context

“Larry Culp: Sheila, good morning. There's no question that the environment remains dynamic. As we look at where we are, as we said in our prepared remarks, I think we feel very good about our position here, largely on the back of customer behavior, which hasn't changed. We've seen service orders continue to be robust. Parked aircraft, particularly the CFM56, has actually declined since the beginning of March. I think Rahul highlighted the fact that we've got our MRO footprint really oversubscribed at this point in a significant way. As much as we're pleased with the delivery increases, our spare parts delinquencies are up, unfortunately. I think on the back of that, and I don't suspect we'll hear much different in Farnborough, we do expect a return to more modest departure growth in the second half. We saw a relatively flattish performance, a little bit of the uncertainty that kept us holding the guide 90 days ago. We think that will begin to return to a more normal environment through the back half, going into 2027, clearly, at a more robust level. I think all in all, as we sit here mid-year, demand could evolve from here, but it's been far more resilient than maybe many of us would have expected. I think the tone at IATA very much was, let's all remember that as we saw in the pandemic, demand will return to more normal conditions, probably sooner than we would have otherwise anticipated, and potentially at a more pitched level. Therefore, let's continue to be prepared for that. That's really, I think, what we're seeing in our conversations with our customers. That's what we're preparing for, not only with respect to the back half of 2026, but as we get ready for 2027.”