A Pratt & Whitney PW1000G turbofan engine on the wing of an Airbus A320neo during a delivery ceremony outside the Airbus Group SE factory in Hamburg, Germany, Friday, February 12, 2016.
Bloomberg | Krystian Bocsi
Actions RTX fell 13% on Tuesday after the aerospace giant said a production problem with some popular engines would require “accelerated” inspections of around 200 aero engines.
The problem stems from the powdered metal used to make some engine parts, said RTX, parent of aircraft engine maker Pratt & Whitney, during a quarterly earnings call. This doesn’t apply to engines currently in production, the corporate said.
RTX, formerly often called Raytheon Technologies, lowered its money flow projections for this yr by $500 million to $4.3 billion due to the difficulty.
“It should be expensive,” RTX CEO Greg Hayes said in a talk concerning the company’s earnings. “We’ll make airlines whole by the disruption we’ll cause them.”
The problem is the most recent challenge for airlines, other than late aircraft from manufacturers, as carriers attempt to capitalize on the tourism boom with limited aircraft available.
Pratt & Whitney said it also expects about 1,000 additional engines to be faraway from airline fleets over the subsequent nine to 12 months. Nonetheless, the corporate said it will proceed to provide recent planes and parts.
Some A320neos, single-aisle aircraft and considered one of the world’s hottest aircraft will likely be affected. Competes with Boeing 737 Max.
The Federal Aviation Administration said it’s aware of the difficulty and is involved with Pratt & Whitney and the affected airlines.
“The agency will be certain that appropriate motion is taken,” the FAA said.
Delta Airlines, a major Airbus customer, said it was investigating the difficulty. Airbus didn’t immediately comment. AND JetBlue Airways A spokeswoman said the carrier was “working with Pratt to evaluate the impact on our fleet.”
Meanwhile, stocks General Electrica rival engine maker rose greater than 6% on Tuesday after the conglomerate raised its revenue and money flow forecasts for this yr, partly due to strong demand for jet engines.