April 23 (Reuters) - GE Aerospace on Tuesday

raised its full-year profit forecast even as it continues to

wrestle with supply-chain challenges to keep up with strong

demand for jet engines.

It also slashed estimates for LEAP jet engine production

this year amid Boeing's ( BA ) ongoing production challenges.

Shares of the aerospace giant were up more than 4% in

trading before the bell.

The company has been benefiting from a surge in demand for

after-market services as a strong rebound in travel and a

shortage of aircraft due to production and engine issues has

forced carriers to keep older jets in the air for longer.

Analysts say planemaker Boeing's ( BA ) ongoing safety crisis is

also expected to be a near-term benefit for GE Aerospace as it

increases demand for older engines and allows the company to

supply more of its LEAP engines in the aftermarket.

"We're experiencing a tremendous demand cycle for

services as more people fly and fly more often," CEO Larry Culp

said on an earnings call.

Earlier this month, GE completed its breakup into three

companies focused on aviation, energy and healthcare.

The company 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.

Engine makers typically sell engines to airlines at a

discount and recoup the money by selling parts and services over

the life of the engine.

GE Aerospace, however, is grappling with persistent

supply-chain problems. The company said its total engine

deliveries were short of its target in the first quarter due to

material availability issues.

The shipments of LEAP engines, which power the

narrowbody aircraft of Airbus and Boeing ( BA ), were flat

year-over-year in the March quarter. Spare engine shipments were

down slightly

Culp said the bulk of GE Aerospace's delivery challenges

is attributable to 15 supplier sites. To get around the problem,

the company has deployed more engineers and resources.

Yet, he said the company has more work to do. "The onus

is on us to meet this demand," Culp said.

GE Aerospace now expects LEAP output to be up 10% to 15%

this year from a year ago, down from its previous estimate of

growth of 20%-25%.

CFM International, GE's joint venture with Safran

, is the sole supplier to Boeing's ( BA ) 737 MAX family of

jets, which are currently being produced at a lower rate as U.S.

regulators have stepped up factory checks following a blowout on

a MAX aircraft in January.

GE Aerospace expects 2024 operating profit of $6.2 billion

to $6.6 billion, compared with its earlier forecast of $6

billion to $6.5 billion. Adjusted earnings for the year are

estimated at $3.80-$4.05 per share, compared with $2.95 per

share in 2023.