Key Takeaways Delta Air Lines will add 31 Airbus widebody jets to expand its global network from 2029. DAL aims to boost premium seating and fuel efficiency to support long-haul profitability. Delta Air Lines also ordered 30 Boeing 787-10s, with options for 30 more, for growth.In a bid to cater to the improving air-travel demand scenario, Delta Air Lines (DAL) is continuously looking to expand its widebody fleet. To this end, the Atlanta-based heavyweight airline announced earlier this year that it will add ...

Key Takeaways GE posted 24% revenue growth in Commercial Engines & Services in 2025.RTX logged $10.3B bookings and a record $268B backlog despite supply issues.GE forecasts 14% sales growth for 2026, outpacing RTX's 5.4% outlook.GE Aerospace (GE) and RTX Corporation (RTX) are two prominent names operating in the aerospace and defense industry. As rivals, both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and internationally ...

Key Takeaways United Airlines ordered 300 GEnx engines to power new Boeing 787 Dreamliners. The deal lifts GE Aerospace's GEnx backlog to nearly 1,800 engines plus spares. UAL's fleet commonality with GEnx engines aims to cut costs and support global expansion.United Airlines (UAL) strengthened its long-term partnership with GE Aerospace (GE) by selecting 300 GEnx engines to power its new Boeing 787 Dreamliners. This order will expand UAL’s 787 fleet to more than 200 GEnx-powered aircraft and make it the l ...

Group 1 - United Airlines Holdings Inc. has selected 300 GEnx engines to power its new 787 Dreamliners, which will increase its fleet of GEnx-powered aircraft to over 200 [1][2] - The agreement positions United Airlines as the largest GEnx operator globally, utilizing advanced materials and technologies for enhanced durability and performance [2] - The Brazilian competition authority has approved United Airlines' planned $100 million investment in Azul S.A., which is currently in bankruptcy proceedings [3][4] Group 2 - The $100 million investment will increase United Airlines' stake in Azul from 2% to 8%, aiming to leverage Azul's domestic presence in Brazil [4] - United Airlines operates a comprehensive network for passenger and cargo transportation across six continents, focusing on air travel and logistics [5]

Core Insights - United Airlines has selected 300 GEnx engines from GE Aerospace to power its new Boeing 787 Dreamliners, making it the largest GEnx operator globally [1] - The agreement includes additional spare engines, increasing United Airlines' GEnx-powered 787 fleet to over 200 aircraft [1] - The GEnx engine family is noted for its advanced materials and technologies, providing greater durability and a 99.98% dispatch rate, indicating high reliability [1] Company Relationships - GE Aerospace has maintained a long-standing relationship with United Airlines since 1968, with United operating a diverse fleet of GE Aerospace and CFM powered aircraft [1] - The GEnx engine has accumulated over 70 million flight hours and powers two-thirds of all 787 aircraft in operation, as well as exclusively powering the 747-8 aircraft [1] Future Deliveries - This latest order increases GE Aerospace's firm GEnx future deliveries to nearly 1,800 engines, including spares [1]

Core Insights - The primary growth driver for GE Aerospace is the Commercial Engines & Services segment, which saw a 24% year-over-year increase in organic revenues in Q4 2025, accounting for over 75% of the company's business [1][8] - Orders in the Commercial Engines & Services segment surged 76% year-over-year to $22.8 billion in Q4 2025, driven by strong demand for LEAP, GEnx, and GE9X engines [1][8] Business Performance - GE Aerospace is experiencing growth due to a rising installed base and increased utilization of engine platforms, supported by robust demand in both commercial and defense sectors [2] - The company secured over 500 engine wins at the Dubai Airshow in 2025, including significant orders from flydubai, Riyadh Air, and Cathay Pacific, as well as a landmark deal with Qatar Airways for over 400 GE9X and GEnx engines [3] Market Context - The commercial and military aircraft programs are expected to continue benefiting from strong air travel and defense budgets, positioning GE for sustained demand momentum in the future [4] - Competitors like Howmet Aerospace and RTX Corporation are also seeing growth in the commercial aerospace market, with Howmet reporting a 15% year-over-year revenue increase and RTX achieving 12.1% sales growth in Q3 2025 [5][6] Financial Metrics - GE Aerospace's stock has increased by 49.7% over the past year, outperforming the industry average growth of 29.5% [7] - The company is currently trading at a forward price-to-earnings ratio of 40.81X, which is above the industry average of 32.60X, and holds a Value Score of F [10] - The Zacks Consensus Estimate for GE's earnings for 2026 and 2027 has been rising over the past 60 days, indicating positive market sentiment [11]

Company Overview - GE Aerospace is a key player in the defense and aerospace sector, benefiting from increased geopolitical spending [1] - The company designs, manufactures, and services advanced jet engines, components, and integrated systems for various aircraft types, focusing on propulsion, power, and avionics [5] Recent Developments - Delta Air Lines has selected GE Aerospace's GEnx engines to power its 30 new Boeing 787-10 aircraft, marking a significant contract for the company [1][2] - The contract includes the supply of spare engines and long-term service support, highlighting the reliability of the GEnx engine, which has accumulated over 70 million g-hours since its introduction in 2011 [2] - The GEnx engine currently powers nearly two-thirds of all 787 aircraft in operation, indicating its widespread adoption [2] Strategic Partnerships and Innovations - GE Aerospace and Lockheed Martin have completed engine tests for hypersonic missiles, focusing on a technology that enhances fuel efficiency and extends range for missiles flying at hypersonic speeds [4] - This collaboration reflects the company's commitment to advancing aerospace technology and addressing emerging defense needs [4] Executive Insights - Delta's CEO, Ed Bastian, emphasized that the GEnx engines will enhance operational efficiency and reliability, which are crucial for the airline's growth strategy [3]

Group 1 - GE Aerospace is set to release its fourth-quarter earnings on January 22, with expected earnings of $1.43 per share, an increase from $1.32 per share in the same period last year [1] - The consensus estimate for GE Aerospace's quarterly revenue is $11.21 billion, up from $9.88 billion reported last year [1] - GE Aerospace announced a deal with Delta Air Lines for GEnx engines to power 30 new Boeing 787-10s, which includes options for 30 more aircraft and long-term service support [2] Group 2 - UBS analyst maintained a Buy rating and raised the price target from $366 to $368 [4] - Citigroup analyst maintained a Buy rating but cut the price target from $386 to $378 [4] - Susquehanna analyst initiated coverage with a Positive rating and a price target of $386 [4] - B of A Securities analyst maintained a Buy rating and raised the price target from $310 to $365 [4] - JP Morgan analyst maintained an Overweight rating and raised the price target from $275 to $325 [4]

Group 1 - GE Aerospace is set to release its fourth-quarter earnings on January 22, with expected earnings of $1.43 per share, an increase from $1.32 per share in the same period last year [1] - The consensus estimate for GE Aerospace's quarterly revenue is $11.21 billion, up from $9.88 billion reported last year [1] - On January 13, GE Aerospace announced a deal with Delta Air Lines for GEnx engines to power 30 new Boeing 787-10s, which includes options for 30 more aircraft and long-term services support [2] Group 2 - UBS analyst maintained a Buy rating and raised the price target from $366 to $368 [4] - Citigroup analyst maintained a Buy rating but cut the price target from $386 to $378 [4] - Susquehanna analyst initiated coverage with a Positive rating and a price target of $386 [4] - B of A Securities analyst maintained a Buy rating and raised the price target from $310 to $365 [4] - JP Morgan analyst maintained an Overweight rating and raised the price target from $275 to $325 [4]

Core Insights - Delta Air Lines reported strong fourth-quarter 2025 results, driven by diversified revenue streams, solid international travel demand, and corporate sales growth [2][10] - The company achieved earnings of $1.55 per share, surpassing estimates, despite a year-over-year decline due to high labor costs [3][10] - Revenue for the quarter reached $16 billion, exceeding expectations and reflecting a 2.9% year-over-year increase [4][10] Financial Performance - Earnings per share (EPS) for Q4 2025 was $1.55, beating the Zacks Consensus Estimate of $1.53, but down 16.22% year-over-year due to increased labor costs [3] - Total revenues were $16 billion, surpassing the Zacks Consensus Estimate of $15.63 billion, with adjusted operating revenues at $14.6 billion, a 1.2% increase year-over-year [4] - The company maintained a strong earnings surprise record, exceeding estimates in the past four quarters with an average surprise of 7.94% [5] Fleet Expansion - Delta Air Lines has agreed to acquire 30 Boeing 787-10 widebody aircraft, with options for an additional 30, expected to enhance long-haul capabilities starting in 2031 [6][7] - This acquisition is part of Delta's international growth strategy, aimed at strengthening its global footprint and supporting overseas expansion [7] Cost Structure and Challenges - Total operating expenses rose 5% year-over-year to $14.5 billion, driven by inflationary pressures despite lower fuel and maintenance costs [14] - Salaries and related costs increased 11% year-over-year to $4.59 billion due to a new pilot contract ratified in 2023 [14] - Non-fuel unit costs (CASM-Ex) increased by 4% year-over-year to 14.27 cents, indicating ongoing cost pressures [15] Valuation Concerns - Delta Air Lines' stock is considered unattractive from a valuation perspective, with a forward 12-month price-to-sales ratio of 0.70X, higher than the industry average of 0.59X [16] Investment Outlook - While Delta Air Lines delivered impressive results, potential investors are advised to exercise caution due to ongoing challenges and monitor the company's progress for a more favorable entry point [19]