- Rolls-Royce shares sank by 6.5%, reducing its value by £2.7bn yesterday
- Share price back up 3.3% today
Rolls-Royce saw nearly £3billion wiped off its value yesterday after a Hong Kong airline identified an engine component failure with the share price rebounding today
Cathay Pacific Airways revealed one of its Airbus A350 aircraft was forced to return to Hong Kong during a flight to Zurich yesterday after discovering the issue.
The airline has started inspecting all 48 of its A350 aircraft which are powered using engines made by Rolls-Royce – and it already identified further repair and maintenance works.
Rolls-Royce saw nearly £3bn wiped off its value yesterday after a Hong Kong airline identified an engine component failure
In a statement, Cathay said: ‘In total, we have identified 15 aircraft with affected engine components that require replacement and three have already gone through successful repairs.’
Since Monday, it has cancelled 68 flights, with the disruptions continuing to at least Saturday.
Following the incident, Rolls-Royce shares sank by 6.5 per cent to 464.3p, reducing its value by £2.7billion yesterday.
However, it bounced back on Tuesday, with shares up 3.3 per cent to 479.80p in early afternoon trading.
Cathay said that each aircraft is undergoing a rigorous inspection.
It added: ‘Upon completion, the aircraft cleared for operation will return to service, while those identified with technical issues will undergo further repair and maintenance work.
‘Meanwhile, we are liaising with the Hong Kong civil aviation department and the aircraft and engine manufacturers.’
Whilst Rolls-Royce told BBC News that ‘it is committed to working closely with the airline, aircraft manufacturer and the relevant authorities to support their efforts.’
The FTSE 100 aeroplane engine maker has performed well since Tufan Erginbilgic joined the firm as its new chief executive in 2023.
In July, the group raked in £7.7billion in the first six months of the year, according to City forecasts.
The 11 per cent hike in sales came as international flights rose back to pre-Covid levels.
It also won a slew of new contracts, including with Indian airline IndiGo, which ordered 60 engines, and VietJet.
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