RTX to take $3 billion charge on Pratt & Whitney engine failures

Pratt & Whitney engine flaw will ground 350 planes per year through 2026. RTX Corp.’s plan to address the latest flaw in its marquee commercial jet engine will ground hundreds of Airbus SE A320neo aircraft over the next three years, a fresh source of disruption to global airlines’ post-pandemic recovery.

Shop visits for accelerated inspections and repairs to key components in Pratt & Whitney’s geared turbofan engine made from tainted metal powder will take up to 300 days each to complete and result in an average of 350 aircraft being parked per year through 2026, peaking at about 650 planes in early 2024, RTX executives said Monday on a call with analysts.

The fallout highlights the sweeping impact to the global fleet from the latest problem with Pratt’s geared turbofan engine, one of two power plants offered on the top-selling Airbus A320neo family of aircraft. That may complicate efforts by airlines to increase capacity and flight service to meet steady post-Covid lockdown demand for travel.

RTX cut its full-year sales outlook and will take a roughly $3 billion charge in the third quarter tied to the plan to address the flawed parts, which will involve compensating airlines for the disruption to their operations.

Pratt & Whitney, a unit of aerospace giant RTX, said in July that 1,200 GTF engines must be removed and inspected over the next 12 months. That came after the company discovered contamination in the powdered metal used to manufacture high-pressure turbine discs could shorten their life span.


Source: RTX (ex-Raytheon)