Aircraft Engine Sales Rise as Aftermarket Growth Slows

Safran Reports 13.4% Third-Quarter Sales Growth as Aftermarket Concerns Weigh on Shares

PARIS, France — October 23, 2026 — French aerospace manufacturer Safran reported 13.4% organic sales growth in the third quarter of 2026, reaching €9 billion, supported by its core engine business. However, shares fell approximately 6% in early trading as investors assessed the potential for slower aftermarket growth amid airline capacity reductions linked to high fuel prices. The results highlight changing demand dynamics across the Aircraft Engine Market. 

Main Development

Safran's propulsion division recorded 13.2% organic sales growth during the quarter, while aftermarket revenue increased 18.7%. Despite the gains, analysts expressed concern that propulsion aftermarket growth had slowed and fallen short of expectations.

Safran Chief Executive Officer Olivier Andries rejected concerns about weakening spare-parts demand and said the company expected full-year spare-parts growth of approximately 25% compared with 2025. The company also reaffirmed its 2026 financial outlook, which it had raised in July.

The results come as aircraft manufacturers and engine suppliers continue to manage production requirements alongside demand for maintenance, repairs and spare parts. Aftermarket performance is particularly relevant because airlines depend on engine servicing and replacement components to maintain fleet availability.

According to Next Move Strategy Consulting, the global Aircraft Engine Market was valued at USD 67.94 billion in 2024 and is projected to reach USD 118.89 billion by 2030, expanding at a compound annual growth rate of 9.8% from 2025 to 2030.】

Key Highlights

• Quarterly revenue growth: Safran recorded €9 billion in third-quarter sales, representing 13.4% organic growth.

• Propulsion performance: The company's propulsion division achieved 13.2% organic sales growth, while aftermarket revenue rose 18.7%.

• Spare-parts outlook: Safran expects full-year spare-parts growth of approximately 25% compared with the previous year.

• Investor concerns: Shares declined approximately 6% in early trading as investors evaluated the sustainability of aftermarket growth into 2027. 

Analyst Insight

According to analysts at Next Move Strategy Consulting, aircraft engine market performance depends on both original equipment demand and the recurring aftermarket business. Growth in engine manufacturing must be assessed alongside maintenance requirements, spare-parts availability and the operating conditions of airline customers.

NMSC analysts note that Safran's latest results illustrate the importance of distinguishing revenue growth from the pace of growth. Although propulsion and aftermarket sales increased, investor concerns over the outlook indicate that future performance expectations remain important to market sentiment. The reported results do not, by themselves, establish a new deterioration in aircraft engine supply availability.

Industry Outlook

Safran's results provide a current indicator of the commercial engine industry's operating environment, with continued revenue growth accompanied by questions about aftermarket momentum. The company's reaffirmed financial outlook and projected spare-parts growth will remain important reference points for assessing its performance in the final quarter of 2026.

More broadly, aircraft engine manufacturers will need to balance new-engine production, maintenance capacity and spare-parts demand as airlines adjust operations to changing costs and passenger-market conditions. The interaction between equipment deliveries and aftermarket services will remain an important factor in evaluating industry performance through 2027.

Source: Reuters

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Prepared By: Sanyukta Deb