The Ohio-based company, however, said its 2025 forecast did not assume changes in planemakers' delivery schedules, further tariff escalation or a global economic recession.
Its shares were up 4.5% in pre-market trade as the company reported stronger-than-expected profit in the first quarter.
President Donald Trump's trade war has created the biggest uncertainty for the aerospace industry since the COVID pandemic. With little clarity on how consumers will behave in the face of a potentially worsening economy, some of GE's customers are struggling to accurately forecast their business.
The International Monetary Fund last week warned that rising trade tensions and sweeping shifts in the global trading system would hurt global growth.
GE Aerospace said heightened tariffs would result in additional costs for itself and its suppliers, warning of delays in spare engine deliveries. It expects flight departures, which drive aftermarket services business, would now be lower than its previous estimate.
CEO Larry Culp said he has spoken to a number of senior members of the Trump administration, including the president, advocating a tariff-free regime for the aerospace industry.
Aside from an 18-month transatlantic tariff war over Airbus (AIR.PA) and Boeing (BA.N) subsidies in 2020 and 2021, the industry has broadly operated under a 1979 treaty on zero-duty trading in aerospace that includes the U.S. and Canada, but not Mexico.
Culp said the zero-duty regime has helped the U.S. aerospace industry to enjoy a $75 billion annual trade surplus.
"As the U.S. Administration engages in discussions with its trade partners, we'll continue to advocate for an approach that reestablishes 0 to 0 tariffs in the aviation sector," he said on an earnings call.
GE Aerospace, however, expects tariffs to persist through the end of this year. The company said the trade war would impact its spare parts sales to China.
It expects to mitigate the tariff costs by roughly $500 million by leveraging available trade programs, such as duty drawbacks and driving up productivity. It is also controlling costs and passing along the tariffs through a surcharge to its customers.
Culp said the measures taken by the company along with a commercial services backlog of over $140 billion are expected help it produce an adjusted earnings of $5.10 per share to $5.45 per share this year.
GE Aerospace has a dominant share in the engine market for narrowbody jets and enjoys a strong position in widebodies. More than 70% of its commercial engine revenue comes from parts and services.
It reported an adjusted profit per share of $1.49 for the quarter through March, topping analysts' average estimates of $1.27. The company's adjusted revenue for the first quarter rose 11% to $9 billion.
