RTX shares plummet on Pratt & Whitney jet engine problem. Tuesday, shares of RTX fell 14% after the aerospace behemoth announced that a manufacturing defect in some of its most popular engines would necessitate “accelerated” inspections of approximately 200 aircraft engines.
During a quarterly earnings call, RTX, the parent company of aircraft engine manufacturer Pratt & Whitney, stated that the issue originates from using powdered metal to fabricate specific engine components. According to the manufacturer, engines presently in production are not affected.
Due to the issue, RTX, formerly known as Raytheon Technologies, reduced its cash-flow forecast for the year by $500 million to $4.3 billion.
During an earnings call, RTX CEO Greg Hayes stated, “It will be expensive.” “We’re going to compensate the airlines for the disruption we cause them.”
The issue is the most recent obstacle for airlines, in addition to late aircraft deliveries from manufacturers, as carriers attempt to capitalize on a travel surge with a limited number of available planes.
Pratt & Whitney estimates that approximately 1,000 more engines must be removed from airline fleets within nine to twelve months. The company stated, however, that it will continue to deliver new aircraft and supplies.
Some A320neos, a narrow-body aircraft and one of the world’s most famous aircraft, will be affected. It is comparable to the Boeing 737 Max.
The Federal Aviation Administration stated that it is aware of the issue and is in contact with Pratt & Whitney and the affected airlines.
FAA: “The agency will ensure the appropriate measures are taken.”
Delta Air Lines, a significant Airbus customer, has stated that it is investigating the matter. Airbus did not comment immediately.