World's first! CATHAY PAC AIR A350 aircraft engine malfunctions, Rolls-Royce and Airbus stock prices plummet
CATHAY PAC AIR announced that due to engine component failures in A350 aircraft, the company has decided to conduct a comprehensive "preventive inspection" on all 48 Airbus SE A350 fleets under its flag. This A350 aircraft engine component failure is the first of its kind globally. As a result, Rolls-Royce's stock price plummeted by over 6% at one point, while Airbus's stock price plunged by over 1.3%
CATHAY PAC AIR announced that due to the discovery of engine components issues on an A350 aircraft, the company has decided to conduct a comprehensive "preventive inspection" on all 48 Airbus SE A350 fleets under its flag.
Previously, an A350 aircraft flying to Zurich in the early hours of September 2 was forced to return to Hong Kong due to engine component failure. Subsequent inspections by Cathay Pacific revealed that "multiple identical engine components on the A350 aircraft need to be replaced," but the company did not specify the exact issues found on the engines.
This incident led to a decline in the stock prices of Airbus and Rolls-Royce (the manufacturer of A350 engines). Rolls-Royce (RR/.LN) saw a sharp drop starting around 21:25 Beijing time, with the decline rapidly expanding to 6%. Meanwhile, Airbus's stock price in Paris fell by over 1.3%, marking the third consecutive trading day of decline. Both companies were among the top decliners in the pan-European Stoxx 600 index.
It is worth noting that the stock prices of these two companies had already started to decline before Cathay Pacific announced the inspection news, partly due to a large-scale strike and protest activity in Israel, putting pressure on the government to reach a ceasefire agreement with Hamas.
In its statement, Cathay Pacific stated that the engine component failure on the A350 aircraft is the first of its kind globally. The company has reported this situation to the aircraft and engine manufacturers as well as relevant regulatory authorities. To ensure safety, Cathay Pacific is actively procuring the necessary replacement parts and transporting them to Hong Kong to assist in the repair work.
As some aircraft need to be grounded for several days for maintenance, Cathay Pacific has had to adjust its flight schedule. Currently, 24 round-trip flights for today and tomorrow have been canceled, and affected customers have been notified. The company will release information on the adjustment of the remaining flights as early as tomorrow.
