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- Rolls-Royce shares fell 6.5% yesterday, reducing their value by £2.7bn
- The stock price rose again by 3.3% today
Rolls-Royce lost almost £3bn of value yesterday after a Hong Kong airline identified a fault with an engine component, while its share price recovered today.
Cathay Pacific Airways revealed that one of its Airbus A350 aircraft was forced to return to Hong Kong during a flight to Zurich yesterday after discovering the problem.
The airline has begun inspecting its 48 A350 aircraft that use engines made by Rolls-Royce, and has already identified further repair and maintenance work.
Rolls-Royce lost almost £3bn of value yesterday after a Hong Kong airline identified a fault in an engine component
In a statement, Cathay said: “In total, we have identified 15 aircraft with affected engine components requiring replacement and three have already been successfully repaired.”
Since Monday, 68 flights have been cancelled and disruptions will continue at least until Saturday.
After the incident, Rolls-Royce shares fell 6.5 per cent to 464.3 pence, reducing its value by £2.7 billion yesterday.
However, it recovered on Tuesday, with shares up 3.3 percent to 479.80 pence in afternoon trading.
Cathay said each aircraft is undergoing rigorous inspection.
He added: “Once completed, aircraft authorised to operate will return to service, while those identified with technical problems will undergo further repair and maintenance work.
“In the meantime, we are in contact with the Hong Kong civil aviation department and aircraft and engine manufacturers.”
Meanwhile Rolls-Royce told BBC News it is “committed to working closely with the airline, aircraft manufacturer and relevant authorities to support their efforts.”
The FTSE 100 aircraft engine maker has performed well since Tufan Erginbilgic joined the company as its new chief executive in 2023.
In July, the group raised £7.7bn in the first six months of the year, according to City forecasts.
The 11 percent increase in sales came as international flights returned to pre-Covid levels.
It also won a number of new contracts, including with Indian airline IndiGo, which ordered 60 engines, and VietJet.
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