RTX announces between 3 and 3.5 billion dollars in charges due to a defect in its aircraft engines

By Le Figaro with AFP

Published ,

The impact on the group’s revenues will reach $3 to $3.5 billion. BENOIT TESSIER / REUTERS

The parent company of Pratt & Whitney announced in July that its engines would have to undergo an early inspection because of a defect in a metal powder made by the group.

The American aeronautics and defense company RTX, parent company of Pratt & Whitney, will record a charge of 3 to 3.5 billion dollars in “coming years» for problems caused by contaminants in the manufacturer’s engines, she announced Monday. The impact on the group’s revenues will reach 3 to 3.5 billion dollars, including a charge of 3 billion recorded in the 3rd quarter of 2023, the group indicated in a press release.

RTX announced in July that many PW1100G-JM engines – those which equip the Airbus 320neo – would have to undergo early inspection because of a defect in a metal powder made by the group to manufacture high-pressure turbine disks. . The group then explained that this problem did not cause any immediate danger, but led to a risk of premature wear. This contamination potentially affects 1,200 engines produced between the fourth quarter of 2015 and the third quarter of 2021, out of some 3,000 manufactured in total. Around 600 to 700 engines will be inspected between 2023 and 2026, in addition to the overhauls that were already planned, RTX said on Monday.

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More and more devices nailed to the ground

The acceleration of engine removals and maintenance visits will result in more aircraft being kept on the ground, the group further warns. RTX thus explains that it anticipates a “significant increase in the number of A320s, equipped with its PW1100 GTF engine, on the ground» between 2023 and 2026. The charge of 3 to 3.5 billion dollars includes potential compensation for the disruptions caused. The phenomenon risks in fact seizing up in the coming months the schedules of many airlines which were already struggling to respond to the post-Covid recovery.

RTX shares plunged 3.5% Monday morning in electronic trading before the opening of the New York Stock Exchange.

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