Allison Lampert

Hartford, Conn. (Reuters) – Engine maker Pratt & Whitney is set to announce an improved version of its geared turbofan engine used by Airbus’ strong-selling A320neo jet family, sources familiar with the matter said on Wednesday.

Pratt will update its GTF engine in order to increase fuel efficiency and produce 4% more thrust. It is expected that it will begin rolling out in 2024.

Raytheon Technologies Corp (NYSE:) Corp is financing Pratt by combining improvements to help win customers, and the increased thrust as an advantage for Airbus’ long-range narrow body jet, the A321XLR. In 2023, the XLR will enter service.

While the increase of 1% is modest, it’s still significant. Airlines are keen to make savings in a difficult time for their financial health and high oil prices.

Pratt is scheduled to announce Thursday’s first GTF Engine update since 2016.

Pratt did not comment on the information, although it was being quietly promoted to airlines by certain sources.

Pratt is facing rival CFM International co-owned with France Safran (PA:), SA and U.S.-based General Electric (NYSE:) whose engines power nearly 60% of A320’s ordered jets.

As airlines struggle to cut their emissions, the upgrade will be a welcome addition. However engine manufacturers are also looking at longer-term innovations like hybrid-electric propulsion for fuel efficiency.

CFM announced plans to build an open-bladed engine for fuel efficiency and emission reductions of 20%. CFM’s “RISE” engine could be in service as early as the 2030s.

A320 single-aisle aircraft and Boeing’s 737 MAX (NYSE:) Co had enjoyed a rise in domestic traffic which plummeted in 2020 because of the pandemic. Omicron’s new travel restrictions are raising doubts about the sector’s recovery.

The effectiveness of the updated update in winning customers is still unknown.

According to one source, Pratt could be able to attract more airlines by making improvements during campaigns that take place in hot and high-altitude regions, like the Middle East.

Air Arabia stated that in November it had spoken to Pratt, the low-cost carrier Air Arabia and CFM about 240-250 engines. This would be used for 120 Airbus A320neo Jets.