(Reuters) - GE Aerospace on Thursday forecast stronger profit in 2025, saying it is better prepared to meet jet engine demand with progress in resolving supply chain issues that had hobbled production.

Fourth-quarter earnings topped Wall Street estimates, boosting the company's shares by 7%.

The production of LEAP engines, which power Airbus and Boeing narrowbody aircraft, is expected to increase 15% to 20% this year after a 10% year-on-year decline in 2024.

"We learned a lot through last year," CEO Larry Culp said in an interview. "We have obliterated countless constraints in the supply base."

Primary suppliers are now shipping over 90% of the committed volume, compared with about 50% a year ago, he noted.

GE Aerospace dominates 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.

  Limited engine supplies have delayed production of newer planes, forcing airlines to keep flying older, less fuel-efficient jets and spend billions on aircraft maintenance. Airbus has cited such a supply bottleneck at CFM International, a joint venture between GE and France's Safran SA.

GE Aerospace is now "well aligned" with Safran's plan to raise output of its best-selling A320neo family to 75 jets a month, Culp said. "We're working on the right things. We just need to do more of it."

   Culp said GE Aerospace is doing contingency planning to reduce risks of any trade wars prompted by U.S. President Donald Trump's tariff threats, which analysts say would worsen the industry's supply chain problems. 

   GE Aerospace has been in frequent contact with the Trump administration, he noted, expressing hope that the president's agenda around innovation and manufacturing would benefit his company and the industry.

"The challenge is really operational and technical," Culp said. "I don't think it's economic. I don't think it's political."

GE Aerospace expects 2025 profit of $5.10 to $5.45 per share, compared with analysts' average estimate of $5.23, according to data compiled by LSEG.

It reported an adjusted profit of $1.32 per share, beating analysts' average expectations of $1.04.

The company also announced plans to increase its share buybacks to $7 billion in 2025 and its dividend by 30%.

Shares of GE Aerospace were up about 7% at $201.50 at midday.