Air New Zealand is cancelling and delaying some flights due to problems with Rolls-Royce Holdings’ (LON:RR) engines, Reuters has reported. The problems come after last year All Nippon Airways (ANA), found a problem with the group’s engines in its fleet of Boeing 787 Dreamliners.
Rolls-Royce’s share price has been little changed in London this morning, having given up 0.18 percent to 839.00p as of 09:58 GMT, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.23 percent higher at 7,364.94 points. The group’s shares have added more than 26 percent to their value this year.
Reuters reported this morning that Air New Zealand had said that ‘two recent events’ involving Rolls-Royce’s Trent 1000 engines had prompted it to cancel and delay some international flights over the coming weeks. Engines on its Boeing Co 787-9 jets would now require early maintenance. The British engine maker had previously cautioned that 400 to 500 Trent 1000 engines were affected by issues with components wearing out earlier than expected.
Air New Zealand further noted that the UK group did not have spare engines available while the maintenance work was being undertaken, meaning it would be focused on finding replacement aircraft capacity.
Rolls-Royce meanwhile told the newswire that it was working with Air New Zealand to minimise disruption and restore full flight operations as soon as possible.
Analysts on Rolls-Royce
The 18 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 758.00p on the shares, with a high estimate of 1,208.00p and a low estimate of 560.00p. As of December 5, the consensus forecast amongst 22 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.