Revenues and earnings at General Dynamics’ aerospace unit, composed of Gulfstream Aerospace and Jet Aviation, climbed in the first quarter as higher service income more than offset fewer aircraft deliveries. Aerospace revenues in the quarter eked out a 0.8 percent year-over-year increase, to $1.9 billion, while earnings soared 10.8 percent, to $243 million.

Gulfstream shipped 25 aircraft (21 large-cabin jets and four super-midsize G280s) in the quarter, down from 28 (25 large-cabin, three G280s) in the same period a year ago. Speaking during a quarterly investor call today, General Dynamics chairman and CEO Phebe Novakovic said Gulfstream will ramp up production in follow-on quarters to meet the forecasted 124 deliveries this year—five more units than last year.

First-quarter service revenue growth at both Gulfstream and Jet Aviation made up for the aircraft delivery shortfall, she noted. “In particular, Jet Aviation had strong performance at its FBOs in the U.S.,” Novakovic said, adding that Russian sanctions have not affected revenues at Jet Aviation and Gulfstream service center locations in Europe.

Meanwhile, Gulfstream sales remain “strong…especially in the U.S. market,” according to Novakovic. “European sales have slowed, but Western Europe is improving, as is Asia outside of China.” Overall, Gulfstream had a book-to-bill of 2.1:1 in the quarter, and backlog at the aerospace division increased to $17.62 billion, up from $11.93 billion a year ago.