On September 17, 2026, Reuters reported that GE Aerospace (NYSE:GE) Chief Financial Officer Rahul Ghai expressed confidence that a durability issue with the GE9X engine’s mid-seal will not delay The Boeing Company (NYSE:BA)’s Boeing 777X’s planned 2027 entry into service.
Speaking at a Morgan Stanley conference, Ghai said GE began shipping GE9X engines with a redesigned mid-seal to Boeing in the third quarter and expects FAA certification of the modified part within the next few months.
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Bull Case
GE Aerospace (NYSE:GE) moved the mid-seal issue from investigation to a production-ready redesign without changing the GE9X schedule. Testing showed that the original seal, which connects the engine’s front and rear sections, lacked the durability GE expected. The company identified the root cause, completed a redesign, validated the new component internally, and incorporated it into engines now moving through production. It shows a relatively fast engineering response to a potentially disruptive problem.
The separate certification paths reduce the risk that the redesigned seal will interrupt The Boeing Company (NYSE:BA)’s remaining flight-test program. GE said Boeing can continue using the original seal for current certification work. It includes the approvals required before ETOPS testing. GE pursues separate FAA approval for the redesigned component in production aircraft. This structure allows Boeing and GE to advance regulatory work in parallel instead of suspending the overall program while they wait for the new seal’s certification.
Keeping the 777X on schedule protects a large engine order book and GE’s long-term aftermarket opportunity. The GE9X exclusively powers the 777X, and GE previously reported an order book exceeding 950 engines. Emirates alone has since increased its total order to more than 540 units. A timely entry into service would let GE begin converting those orders into engine deliveries and establish an installed base that can generate maintenance, spare-parts and service revenue for decades.
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Bear Case
The FAA has not yet certified the redesigned seal, so GE Aerospace (NYSE:GE)’s timeline still depends on regulatory approval. GE expects certification within the next few months, but internal testing cannot substitute for the FAA’s decision. Boeing CEO Kelly Ortberg separately warned that regulatory work on the 777X could extend into 2027 because of engine-certification issues. It shows that the remaining process still carries schedule risk despite GE’s confidence.
GE’s exclusive position on the 777X creates concentration risk as well as commercial upside. The GE9X has no alternative airframe application. The Boeing Company (NYSE:BA)’s 777X already runs roughly six years behind its original schedule and has generated more than $15 billion in charges for Boeing. Any further aircraft or engine delay would postpone GE’s engine deliveries and the creation of its aftermarket service base, even if Boeing absorbs most of the program’s direct accounting charges.
The redesign could add certification, production, or retrofit costs during an already margin-dilutive engine ramp. GE has not disclosed the expense associated with testing the new seal, modifying engines or addressing units that already contain the original component. The firm also reported that Commercial Engines & Services margins contracted 160 basis points in the second quarter partly because of higher installed-engine production. It includes the GE9X, so unexpected rework could add pressure during the early manufacturing ramp.
Hedge Fund Sentiment
GE Aerospace (NYSE:GE)’s hedge fund count fell to 113 in the second quarter from 119 in the first, with position value rising to $29.88 billion from $21.23 billion, according to Insider Monkey’s database. The Boeing Company (NYSE:BA), whose 777X program depends entirely on GE9X engine reliability, saw its own holder count decline to 90 from 99, with position value rising to $7.00 billion from $6.13 billion.
Conclusion
GE Aerospace appears to have contained the mid-seal problem operationally. The company identified the root cause, completed and tested a redesign, incorporated the new seal into current production, and preserved Boeing’s ability to continue certification work with the original component. That progress reduces the probability that this specific issue will derail the 777X’s planned 2027 entry into service and protects GE’s substantial engine and long-term service opportunity.
However, the FAA still controls the final approval, and Boeing has acknowledged that engine-related regulatory work could extend into 2027. GE also has not quantified the redesign’s cost or explained the full treatment of engines carrying the original seal. The news supports a cautiously bullish view for GE: management has presented a credible technical solution, but investors should wait for FAA certification before treating the issue as fully resolved.
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