The news comes after the company recently warned that the cost for fixing the issues with its Trent 1000 and Trent 900 engines would broadly double from the total cash cost in 2017 of £170 million and reach a peak this year.
Rolls said it would reprioritise spending to mitigate the costs and kept its 2018 free cash flow guidance unchanged at about £450mn ($643mn), give or take £100mn. Goldman Sachs restated a conviction-buy rating and set a GBX 1,261 ($17.82) price objective on shares of Rolls-Royce in a report on Monday, February 12th.
New inspections will lead to additional disruption for the 380 Package C engines now in-service with airlines.
The issue concerns parts in 380 engines wearing out sooner than planned and affects up to 170 planes in use by airlines.
"Our team of technical experts and service engineers is working around the clock to ensure we return them to full service as soon as possible", he said.
About 200 engines are due for maintenance in coming weeks, according to East, who didn't say whether airline compensation is factored into the new guidance.
"Our focus is on supporting our customers and doing all we can to minimise any impact on their operations", says Rolls-Royce chief executive Warren East. "We recognise that the application of these actions may cause additional disruption to our airline customers". The snag has led to unscheduled shop visits for dozens of Boeing's 787s at carriers including Virgin Atlantic and British Airways, costing Rolls-Royce more than £220m in charges past year. Virgin has also leased three Airbus A330-200s to help cover its flying programme.
In March the engineering firm revealed a charge of around £340 million for repairs on existing engines, but on Friday it said the requirement for more regular inspections will lead to "higher than previously guided cash costs".
The European Aviation Safety Agency (EASA) will also order increased inspections of affected engines in line with actions outlined by Rolls-Royce.
Rolls-Royce Holdings will bid to provide engines for a new wide-body jetliner that China is developing jointly with Russian Federation, the China Daily newspaper reported today, citing the British engineering company.