Frankfurt The massive problems with the so-called geared turbofan engine from Pratt & Whitney (P&W) are now also affecting the DAX company MTU Aero Engines. The company announced on Monday afternoon that it expected losses of around one billion euros in sales and earnings before interest and taxes (EBIT) in the current financial year due to the recalls. The company’s shares then fell by over nine percent.
Airlines around the world have been struggling with problems with P&W engines for months. They are primarily used in the Airbus A320 and A220. In addition to the constant failures, there were recently material problems. The background is inclusions in the discs of the high-pressure turbines.
At the beginning of August, P&W itself instructed the airlines to inspect the windows in the engines earlier. A premature break could occur, which poses a problem for flight safety. The engine manufacturer expects costs of between three and 3.5 billion dollars due to the overhaul and replacement of parts. Since MTU has a stake of around 18 percent in the construction of the engines, the German company has to record a corresponding share of these costs.
The previous forecast for the current year is therefore subject to reservation, according to a statement from MTU. We will try to limit the effects as best as possible. The process would also affect liquidity in the years 2024 to 2026.
According to Airbus, this involves metal or metal powder that was produced between autumn 2015 and spring 2021. According to RTX, P&W’s parent company, these are microscopic impurities in the metal used to make high-pressure turbine discs.
The American aviation authority FAA recently ordered early inspections. According to RTX, 1200 aircraft engines are affected. On Monday, P&W provided details about this recall. After that, 600 to 700 engines per year will have to go back to the workshop in the coming years. This in turn will lead to the failure of an average of 350 aircraft between 2024 and 2026.
Warning of premature breakage of the engine disks
The P&W engine has long been considered a problem child. It often causes problems; spare parts and replacement engines are in short supply. Some time ago, the Indian low-cost airline Go First applied for bankruptcy protection, citing the failures of jets equipped with these engines. The airline therefore sued P&W for damages amounting to around one billion dollars.
Lufthansa is also affected by the current recall. In a first step, the company has to submit 13 engines for an additional inspection, then a further 50 in 2024. The Hungarian Wizz Air is hit harder. The low-cost airline had to adjust its offer and cancel flights.
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