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

RTX discloses manufacturing flaw affecting 600-700 engines, requiring inspections and repairs over 3 years.
Issue causes ripple effect across aerospace industry - airlines face capacity cuts, suppliers warn of rising costs.
Airbus CEO backs RTX engines despite repairs needed to ensure safety.
RTX shares fall over issue initially disclosed in July but now appears more extensive.
Comes amid ongoing supply chain woes, staff shortages for aerospace industry recovering from pandemic.

reuters.com

Relevant topic timeline:

9/7/2023

Boeing Needs a New Plane Model or Risks Losing Market Share. There Is a Wild Solution.

Boeing faces the risk of losing market share if it doesn't introduce a new plane model, and one potential solution is to embrace new aviation technology to outpace rival Airbus.

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

Aerospace supplier RTX estimates pulling 600 to 700 engines off jets for inspections due to a materials defect, leading to a reduction in capacity for Airbus and a $3 billion charge in the third quarter, with repair work expected to last up to 300 days per engine.

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.

9/11/2023

RTX Expanding Engine Checks for Pratt & Whitney Engines, Grounding Hundreds of Airbus Planes Through 2024

RTX Corp.'s Pratt & Whitney unit will ground hundreds of Airbus A320 jets for months due to engine checks on nearly the entire fleet, causing significant financial and operational challenges for airlines.

9/11/2023

RTX Stock Plunges on Engine Woes Despite Strong Earnings; Technicals Point to Further Downside

Despite positive earnings and increased guidance, the stock of aerospace and defense company RTX Corporation (NYSE: RTX) has been underperforming, facing technical risks and potential downgrades that pose a threat in the near term.

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.

9/22/2023

Fake Aircraft Parts Scandal Grounds Planes, Prompts Investigations into Mysterious Supplier

A scandal involving the distribution of fake airplane parts by a dubious company, AOG Technics, has affected around 100 planes belonging to major airlines worldwide, causing delays and safety concerns in the airline industry.

Topics

Posted 9/12/2023, 4:26:00 PM

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

RTX discloses manufacturing flaw affecting 600-700 engines, requiring inspections and repairs over 3 years.
Issue causes ripple effect across aerospace industry - airlines face capacity cuts, suppliers warn of rising costs.
Airbus CEO backs RTX engines despite repairs needed to ensure safety.
RTX shares fall over issue initially disclosed in July but now appears more extensive.
Comes amid ongoing supply chain woes, staff shortages for aerospace industry recovering from pandemic.

reuters.com

Relevant topic timeline:

9/7/2023

Boeing Needs a New Plane Model or Risks Losing Market Share. There Is a Wild Solution.

Boeing faces the risk of losing market share if it doesn't introduce a new plane model, and one potential solution is to embrace new aviation technology to outpace rival Airbus.

9/11/2023

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

9/11/2023

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

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.

9/11/2023

RTX Expanding Engine Checks for Pratt & Whitney Engines, Grounding Hundreds of Airbus Planes Through 2024

9/11/2023

RTX Stock Plunges on Engine Woes Despite Strong Earnings; Technicals Point to Further Downside

9/12/2023

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

9/22/2023

Fake Aircraft Parts Scandal Grounds Planes, Prompts Investigations into Mysterious Supplier