A pilot shortage is already plaguing the aviation industry. Now comes word that there also could be an airplane shortage.
RTX Corp., which makes parts for Pratt & Whitney engines, discovered a flaw in the engine manufacture and could sideline the Airbus SE’s A320.
The company said it has to conduct inspections of nearly all the Airbus SE A320.
The Airbus SE A320 is a single-aisle plane that is popular with airlines on short-haul flights.
Almost 90 percent of the roughly 3,200 planes need their engines removed and inspected for contaminated metal used in making the equipment. The job will take months, if not years, rendering the planes useless.
“This is obviously a difficult and disappointing situation,” Chief Executive Officer Greg Hayes said. “We’re laser-focused on addressing this in the most expeditious and financially sound way forward.”
Hayes told analysts that approximately 350 planes per year will be idle through 2026. RTX has about a 40 percent share of the turbo engine market. The news is not only a disappointment for the company, but for the industry overall, as it continues to recover from the pandemic.
RTX shares have fallen more than eight percent since Monday. It adjusted its sales growth estimate for the year to reflect the issues and is prepared to pay compensation to airlines for the problem.
Vertical Research analyst Rob Stallard said in a research note: “We think investors are likely to remain a little wary of the RTX stock, as the industry’s track record of dealing with execution issues has not been great in recent years.”
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