RTX jet engine problem ripples across global aerospace industry

Aerospace suppliers and airlines around the world warned of rising costs and a squeeze on plane capacity after US engine maker RTX disclosed that a rare manufacturing flaw could ground hundreds of Airbus jets in coming years. The problem, a rare powder metal defect that can lead to cracks in some engine components, is the latest trouble for the industry, which has been grappling with shortages of staff and supply-chain woes even as travel rebounded from pandemic lows. RTX said on Monday it would have to pull 600 to 700 of its Pratt & Whitney Geared Turbofan (GTF) engines from Airbus A320neo jets for quality inspections over the next three years. The beleaguered supplier's shares closed down 1.7% after earlier hitting a more than two-year low of $73.66 on Tuesday, but it drew backing from Airbus CEO Guillaume Faury who said at an event in Washington D.C. that the repairs were necessary to ensure safety. "We don't like the situation, but we think that was the right thing to do," he said, adding that the problems are "very unfortunate." Airbus said on Monday it does not expect an effect on its 2023 deliveries. Its shares fell 2.4% in Paris on Tuesday. The engine issue was first disclosed in July, but RTX made the extent of the problem clearer on Monday. The announcement caused waves up and down the industry, from component manufacturers like Japan's Kawasaki Heavy Industries to airline carriers like Germany's Lufthansa that rely on the popular Airbus jets.<br/>