Japanese airline ANA Holdings will cancel 113 domestic flights to inspect Rolls-Royce Holdings’ (LON:RR) engines, Reuters has reported. The news comes after it emerged recently that the British group was expected to incur further costs on its problematic Trent 1000 engine programme.
Rolls-Royce’s share price has fallen into the red in today’s session, having given up 0.76 percent to 971.20p as of 14:13 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having lost 0.17 percent to 7,580.15 points. The group’s shares have added just under 10 percent to their value over the past year, as compared with about a three-percent gain in the Footsie.
Japan’s ANA to inspect engines
Reuters reported today that ANA had unveiled plans to cancel 113 domestic flights between July 6 through July 12 to inspect Rolls-Royce engines for compressor issues. The Japanese airline told reporters that the affected Trent 1000 engines are used on the airline’s Boeing 787 Dreamliner jets.
A compressor problem in the Trent 1000 package C engine has already led to planes being grounded by airlines including British Airways, Virgin Atlantic and Air New Zealand. Last month, Rolls-Royce said that it had found the same issue on a “small number of high life Package B engines”. The FTSE 100 group also reportedly has to address issues with the Trent 1000 TEN, which entered service in November.
Analysts on Rolls-Royce
The 16 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 972.50p on the shares, with a high estimate of 1,279.00p and a low estimate of 675.00p. As of July 2, the consensus forecast amongst 20 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.