RTX Engine Recall

RTX corporation stated in July that it suspected contaminated metal in engines the company provided for Airbus jets. RTX stated that the contaminated metal could hinder functionality and pose a safety concern for any plane using the engine. As a result, the company is issuing a recall of hundreds of engines which could cost the company $7 billion in repairs and compensation.

RTX stated Monday that it will be removing and inspecting 600 to 700 Pratt engines over the course of the next three years, with the majority occurring this year and the next.

RTX stated that the contaminated metal on the engines increased the likelihood of cracks forming and since the announcement RTX has already lost $10 billion from its market cap with a further decrease of 6.6% of its share price occurring Monday morning.

Source: Wall Street Journal