RTX to Ground 350 A320neo Jets Annually Through 2026 Due to Engine Part Contamination Issue

RTX says engine issue will ground 350 A320neos per year through 2026
Problem stems from contaminant in engine part material discovered in 2015
RTX to take $3 billion charge in Q3, trim 2025 free cash flow target to $7.5 billion
Issue requires engine removals, inspections lasting up to 300 days per engine
Airbus, MTU Aero Engines warn of potential financial impacts from groundings
RTX working on service bulletin for inspections, will replace affected parts

reuters.com

Relevant topic timeline:

9/11/2023

RTX Takes $3 Billion Charge Due to Flawed Pratt & Whitney Jet Engines

RTX is expecting a $3 billion hit to its pretax results this quarter due to engine manufacturing flaws, which will force accelerated inspections and removal of 600 to 700 engines, potentially costing up to $7 billion.

9/11/2023

RTX Stock Drops as Company Expects Billions in Costs to Fix A320 Jet Engines

RTX stock falls as the aerospace company updates investors on the costly repairs needed for Airbus A320 jet engines.

9/12/2023

RTX Takes $3 Billion Charge Due to Flawed Pratt & Whitney Jet Engines, Sees 350 Planes Grounded Yearly Through 2026

Shares in RTX Corp, the parent company of Pratt & Whitney, plummeted to a two-year low as the company revealed it would ground hundreds of Airbus jets over the next few years to address a rare manufacturing flaw, projecting that an average of 350 jets per year could be grounded through 2026 and estimating a $3 billion charge and $6-7 billion in gross costs to rectify the issue.

9/12/2023

RTX engine flaw causes widespread repairs, capacity cuts across aerospace industry

Aerospace suppliers and airlines are warning of rising costs and a squeeze on plane capacity after RTX disclosed that a rare manufacturing flaw could ground hundreds of Airbus jets in the coming years.

9/14/2023

Delta Expects Limited Near-Term Impact from Pratt & Whitney Engine Issues, But Unclear on Long-Term Effects

Delta Air Lines expects a minimal near-term impact from the quality issues with RTX's Pratt & Whitney engines but is still assessing the full impact, as RTX is set to pull 600 to 700 engines for quality inspections.

Topics

Posted 9/11/2023, 2:19:00 PM

RTX to Ground 350 A320neo Jets Annually Through 2026 Due to Engine Part Contamination Issue

RTX says engine issue will ground 350 A320neos per year through 2026
Problem stems from contaminant in engine part material discovered in 2015
RTX to take $3 billion charge in Q3, trim 2025 free cash flow target to $7.5 billion
Issue requires engine removals, inspections lasting up to 300 days per engine
Airbus, MTU Aero Engines warn of potential financial impacts from groundings
RTX working on service bulletin for inspections, will replace affected parts

reuters.com

Relevant topic timeline:

9/11/2023

RTX Takes $3 Billion Charge Due to Flawed Pratt & Whitney Jet Engines

9/11/2023

RTX Stock Drops as Company Expects Billions in Costs to Fix A320 Jet Engines

RTX stock falls as the aerospace company updates investors on the costly repairs needed for Airbus A320 jet engines.

9/12/2023

RTX Takes $3 Billion Charge Due to Flawed Pratt & Whitney Jet Engines, Sees 350 Planes Grounded Yearly Through 2026

9/12/2023

RTX engine flaw causes widespread repairs, capacity cuts across aerospace industry

9/14/2023

Delta Expects Limited Near-Term Impact from Pratt & Whitney Engine Issues, But Unclear on Long-Term Effects