Jan 23 (Reuters) - GE Aerospace on Thursday

forecast profit for the current year above estimates, as

persistent shortage of new aircraft forces airlines to fly older

jets, creating strong demand for its high-margin parts and

services.

The company also announced plans to increase its share

buybacks to $7 billion in 2025 and dividend by 30%.

Production challenges at Boeing ( BA ) and Airbus

have resulted in longer wait times for airlines to take delivery

of new jets, prompting them to operate older,

maintenance-intensive aircraft to meet demand for air travel.

That has helped companies such as GE Aerospace, which

typically sells its engines to airlines at a discount and

recovers the costs through lucrative contracts with airlines for

parts and services over the lifespan of the product.

Profit at GE Aerospace's commercial engines and services

segment rose 44% to $2.16 billion on revenue of $7.65 billion,

which was up 19% from a year earlier.

The company's commercial engine division gets more than 70%

of its revenue from the sale of parts and services.

The aerospace manufacturer holds a dominant position in the

jet engine market through CFM International, its joint venture

with France's Safran SA.

The company expects 2025 profit in the range of $5.10 per

share to $5.45 per share, compared with analysts' average

estimates of $5.23 per share, according to data compiled by

LSEG.

However, GE Aerospace continues to grapple with supply chain

constraints, which have led to delays in jet engine deliveries

over the past year.

In October, GE reported that these supply issues were

affecting the shipment of engines for both narrowbody and

widebody jets.

GE Aerospace reported an adjusted profit of $1.32 per share,

compared with 65 cents a year ago.

The company's adjusted revenue for the fourth quarter ended

Dec. 31 rose 16% to $9.88 billion.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Anil

D'Silva)