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GE Aerospace Secures Deal From SkyWest to Supply CF34 Engines

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Key Takeaways

  • GE will supply CF34-8E engines and spares for SkyWest's 60 new Embraer 175 regional jets.
  • The CF34 engine family boasts 209M flight hours, 165M cycles and 99.97% dispatch reliability.
  • SkyWest is now the largest CF34 operator, with over 1,200 GE-powered engines in its active fleet.

GE Aerospace (GE - Free Report) recently secured a contract from SkyWest, Inc. (SKYW - Free Report) to provide CF34-8E engines plus spares for the latter’s recently ordered 60 Embraer 175 regional jets.

GE’s CF34 engine is a proven platform for its performance and reliability in SkyWest’s entire fleet of more than 600 aircraft. It features an advanced, powerful and fully modular design and comes with several variants including CF34-3, -8C, -8E, -10A and -10E engines. With more than 11,000 units delivered globally, the CF34 engines have recorded more than 209 million flight hours and 165 million flight cycles.

The engines have an impressive track record of operational efficiency and durability, boast a dispatch reliability rate of 99.97% (12-month rolling) and can also operate on approved SAF fuel blends.

The latest order is a testimony to the long-standing relationship between GE Aerospace and SkyWest, which has now become the single largest operator of GE’s CF34 engines. SkyWest currently operates a strong GE-powered fleet that includes more than 1,200 CF34-3B, -8C and -8E engines.

GE’s Zacks Rank & Price Performance

GE Aerospace currently carries a Zacks Rank #2 (Buy). The company has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company.

However, it has been dealing with high costs and expenses related to certain projects and restructuring activities, which are likely to affect its margins and profitability.

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In the past year, the company’s shares have surged 51.1% compared with the industry’s 17.2% growth.

The Zacks Consensus Estimate for GE’s 2025 earnings has inched up 0.2% in the past 60 days.

Other Key Picks

A couple of other top-ranked stocks from the same space are discussed below.

Howmet Aerospace (HWM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HWM delivered a trailing four-quarter average earnings surprise of 8.8%. In the past 60 days, the consensus estimate for Howmet’s 2025 earnings has increased 0.9%.

L3Harris Technologies (LHX - Free Report) currently carries a Zacks Rank of 2. LHX delivered a trailing four-quarter average earnings surprise of 2.3%. In the past 60 days, the Zacks Consensus Estimate for L3Harris’s 2025 earnings has inched up 0.1%.

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