Factbox: Airlines, suppliers set to take a hit from RTX's jet engine issues

Kawasaki Heavy Industries

12/09/2023 18:58

Sept 12 (Reuters) - Airlines and aerospace suppliers are
expected to take a hit after RTX Corp  RTX.N  said on Monday
600-700 engines on Airbus A320neo jets need to be inspected for
quality issues, which could ground hundreds of aircraft through
2026.
    In July, RTX said microscopic contaminants were found in a
powdered metal used in high-pressure turbine discs that are part
of the Pratt & Whitney Geared Turbofan (GTF) engine's core. The
presence of those contaminants could lead to cracks in the
engine.
    
    The following airlines and aerospace suppliers expect to be
affected:
     
 Air New Zealand  The company said the issue would further
  AIR.NZ          reduce engine availability and have a
                  "significant" impact on its flight
                  schedule from January 2024. The airline
                  has 16 A320neo jets in its fleet.
 Singapore        The inspections would affect four of the
 Airlines'        engines that power Scoot's A320neo fleet
  SIAL.SI  Scoot  and could force it to adjust some of its
                  flights.
 Wizz Air         The Hungarian carrier estimated a
  WIZZ.L          potential 10% capacity reduction in the
                  second half of fiscal 2024.
 IHI Corp         The Japanese firm expects an earnings
  7013.T          hit from the lengthy inspections.
 Kawasaki Heavy   The component manufacturer expects an
 Industries       impact on its earnings from the jet
  7012.T          inspections.
 Melrose          The GKN Aerospace owner said it faces a
 Industries       potential hit of around 200 million
  MRON.L          pounds ($249.54 million) over the period
                  to 2026. 
 MTU Aero         MTU, which has an 18% share in the GTF
 Engines          engines program, said inspections could
  MTXGn.DE        result in a hit to revenue and reported
                  EBIT of around 1 billion euros ($1.07
                  billion) in 2023.
 
 ($1 = 0.8015 pounds)
 ($1 = 0.9317 euros)

 (Compiled by Pratyush Thakur in Bengaluru; Edited by Shounak
Dasgupta)
 ((pratyush.thakur@thomsonreuters.com))