(Alliance News) - Rolls-Royce Holdings PLC on Friday warned that fixing Trent 1000 jet engines will take longer than expected and, as a result, the reduction in the number of grounded aircraft to less than 10 will now be delayed until the second quarter of 2020.
Rolls-Royce shares were down 2.6% in morning trade in London to 786.60 pence each on the news.
The FTSE 100 listed company said it has accelerated intermediate pressure turbine blade replacement for a limited number of Trent engines. This resulted in additional engine removals, leading to further delays.
Rolls-Royce had to start a major Maintenance Repair & Overhaul programme due to faster-than-expected deterioration of the high-pressure turbine blade on the Trent 1000 TEN series of jet engines. The engines are used to power passenger aircraft such as the Boeing 787 Dreamliner.
"We deeply regret the additional disruption that this will cause our customers and we continue to work closely with them to minimise the impact on their operations," Rolls-Royce said on Friday.
It has retained its cash cost guidance of the Trent 1000 Package B and C in-service issues for 2019 and 2020.
In August, the company said it will record an additional GBP100 million charge to fix the Trent engine issues, with the charge now expected to total between GBP450 million to GBP500 million for 2019.
Rolls-Royce separately on Friday said Non-Executive Director Ruth Cairnie will step down from the board at the end of the year to focus on other commitments following her recent appointment as chair of Babcock International Group PLC.
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