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MTU Aero Engines predicts sustained growth to 2024
November 19th 2021
In another sign a post-pandemic aviation industry recovery is underway, Germany’s MTU Aero Engines is predicting all its business units will see growth in the short to mid-term. Read More » It is forecasting revenue from 5.2 billion euros to 5.4 billion euros in 2022 with adjusted earnings above pre-crisis levels by 2024. “The parameters for a sustained recovery in aviation are intact,” said MTU Aero Engines AG CEO, Reiner Winkler. “MTU is well positioned to return to its growth track in 2022, secure an above average share of the sector’s recovery and therefore exceed 2019 levels by 2024.” The company expects its commercial maintenance business to show the strongest upward trend in 2022. It is forecasting organic revenue growth for the business unit in the mid to high 20% range next year with an annual percentage revenue rise in the mid-teens to 2024. “The basis for the good growth prospects are our wide-ranging market access, our broad portfolio, our custom tailored MRO solutions and our financial strength,”’ said chief program officer, Michael Schreyögg. “Moreover, MTU has a strong MRO order backlog, which is currently valued at US$17.9 billion.” In the commercial spare parts business, the company estimates a percentage increase in revenue in the mid-teens range in 2022. This would be driven mainly by the IAE International Aero Engines V2500 for the classic A320 family and the Pratt & Whitney Geared Turbofan for the A320neo, it said. Beyond 2022, the company expects the highest spare parts growth rates also to come from narrow-body and regional aircraft with percentage revenue growth in the low teens to 2024. For the commercial series business, MTU is forecasting revenue growth in the mid to high teens percentage range in 2022 with this annual growth rate continuing to 2024. “Our technological edge, crisis-resistant portfolio with stakes in leading engine programs in all segments and our broad customer base play key roles in our good growth prospects here,” said Schreyögg.
