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

RTX stock fell after the company said it will cost billions to fix engines on Airbus A320 jets.
There is a defect in a compressor on the engine that powers many A320 planes.
RTX estimates the issue will cost between $2.5 billion and $3 billion to fix.
The company is booking a $0.35 per share charge in the third quarter for the engine repairs.
RTX said the compressor issue has not caused any accidents or in-flight shutdowns.

barrons.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 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 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.

9/12/2023

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.

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Posted 9/11/2023, 1:11:00 PM

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

RTX stock fell after the company said it will cost billions to fix engines on Airbus A320 jets.
There is a defect in a compressor on the engine that powers many A320 planes.
RTX estimates the issue will cost between $2.5 billion and $3 billion to fix.
The company is booking a $0.35 per share charge in the third quarter for the engine repairs.
RTX said the compressor issue has not caused any accidents or in-flight shutdowns.

barrons.com

Relevant topic timeline:

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 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

9/12/2023

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