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A Pratt & Whitney PW1000G turboprop sits on the wing of an Airbus A320neo during a handover ceremony outside the Airbus Group SE plant in Hamburg, Germany, on Friday, February 12, 2016.
bloomberg | Krisztian Sorry
shares RTX It fell 14 percent on Tuesday after the airline giant said a manufacturing problem with some of its popular engines would require “expedited” inspections on about 200 aircraft engines.
RTX, the parent company of aircraft engine maker Pratt & Whitney, said during a quarterly call that the problem stems from the powder metallurgy used to make some engine parts. The company said that the engines currently being produced were not affected.
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RTX, formerly Raytheon Technologies, slashed its cash flow forecast for the year by $500 million to $4.3 billion because of the issue.
“IIt’s going to be expensive, Greg Hayes, CEO of RTX, said during an earnings call. “We’re going to make airlines whole as a result of the disruption we’re causing.”
The problem is airlines’ latest challenge on top of manufacturers’ lagging planes, as carriers seek to reap the rewards of a travel boom with a limited number of planes available.
Pratt & Whitney said it also expects to remove about 1,000 additional engines from airline fleets over the next nine to 12 months. However, the company said it would continue to deliver new aircraft and parts.
This issue will affect some of the A320neos, a narrow-body aircraft and one of the most popular aircraft in the world. compete with Boeing 737 max.
The FAA said it is aware of the issue and is in contact with Pratt & Whitney as well as the airlines affected by the issue.
“The agency will ensure that the appropriate steps are taken,” the FAA said.
Delta Airlines, a major Airbus customer, said it was studying the problem. Airbus did not immediately comment.
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