Commercial aftermarket sales to go from strength to strength

Amid ongoing aircraft delivery shortfalls and pressure on supply chains, commercial aftermarket demand and pricing is going to continue to boom, highlights TD Cowen; predicting that RTX and TDG are the most likely to benefit from ‘an extended upcycle’. Estimating that airline capacity expansion is unlikely to reach around 3.6% per annum until 2026, likely lagging traffic demand, the increase of older aircraft’s in-service life will bolster suppliers’ ability ‘to hike prices well above inflation’. (RTS has indicated a 10% rise in catalogue prices for 2024, with GE and Safran both mentioning hikes of around 3-4% above inflation). Within the