On August 18, 2021, a Cathay Pacific Airbus A350 aircraft was parked at Kingsford Smith Airport in Sydney, Australia. Cathay Pacific Airways Limited is Hong Kong’s flagship airline, with its main hub at Hong Kong International Airport.
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rolls royce The stock opened higher on Tuesday, recouping some of the previous session’s losses. Cathay Pacific Several flights were canceled after technical problems were discovered with aircraft powered by British manufacturer Trent’s XWB-97 engines.
Rolls-Royce shares rose 4.4% at 9:15 a.m. London time on Tuesday, after falling 6.5% on Monday.
Cathay Pacific announced on Tuesday that it had discovered engine part failures on 15 Airbus A350 aircraft, a long-range wide-body aircraft powered by Rolls-Royce engines and operated by Qatar Airways, British Airways, British Airways and other airlines. Japan Airlines and Virgin Atlantic.
Cathay Pacific has a fleet of 48 A350 aircraft.
The problem was discovered after an engine component failed on a flight the airline operated from its base in Hong Kong to Zurich on September 2.
The airline said three aircraft had been successfully repaired and the remaining aircraft were expected to resume service on September 7.
The problem resulted in the cancellation of nearly 40 flights on Monday, mainly on Asian routes. Cathay Pacific said it did not expect long-haul flights to be affected in the future and would provide passengers with other options.
Details of cancellations up to September 7 will be announced at 2pm local time on Wednesday, the company added.
Rolls-Royce confirmed on Tuesday that the aircraft uses the Trent XWB-97. The company said Hong Kong authorities had launched an investigation, limiting its ability to comment, but noted it was “committed to working closely with airlines, aircraft manufacturers and relevant authorities to support their efforts.”
The company added that it would keep other airlines operating Trent XWB-97 engines “fully informed of any relevant developments, as appropriate”.
Investors are sensitive to such issues, given Pratt & Whitney’s engine problems that have caused significant delays in the delivery of some Airbus planes; and a series of long-standing manufacturing problems at U.S. Boeing Co.
“While this news raises some concerns, our preliminary analysis is that financial liabilities are likely to be under control. Therefore, our positive view on the stock market has not changed,” Deutsche Bank analysts said of Rolls-Royce on Tuesday.
The company’s shares have had a rocky ride in recent years, taking a big hit from supply chain issues and a drop in aviation demand during the pandemic. Rolls-Royce shares surged more than 220% in 2023 as the company launched a major restructuring and efficiency program that boosted profits.
Rolls-Royce share price.
—CNBC’s Ganesh Rao contributed to this article.
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