RTX to take $3 billion charge on Pratt & Whitney engine problem, shares tumble 8%
Publishing timestamp: 2023-09-11 16:15:25
Summary
Pratt & Whitney's parent company, RTX, announced that an engine manufacturing flaw in its Pratt & Whitney unit will result in a $3 billion hit to its pretax results this quarter. The flaw, which was first disclosed in July, is due to defects in the powder metal used to make some of the engine parts. As a result, hundreds of aircraft engines will need to be removed for inspections through 2027, causing disruptions for airlines such as Spirit Airlines and JetBlue Airways. The issue is expected to cost up to $7 billion and will lead to backlogs in repair facilities. RTX reaffirmed its adjusted earnings estimates for 2023 but expects a $1.5 billion hit to cash flow in 2025.
Sentiment: NEGATIVE
Tickers: RTX, A, JBLU, SAVE, GE,
Keywords: business, life, spirit airlines inc, transportation, raytheon technologies corp, travel, breaking news: markets, breaking news: business, jetblue airways corp, general electric co, business news, markets, airlines, aerospace and defense industry,
Source: https://www.cnbc.com/2023/09/11/rtx-to-take-3-billion-charge-on-pratt-whitney-engine-problem.html