Air pockets can be quickly forgotten by passengers, provided that the crew does their part. This is not yet entirely the case at Rolls-Royce, even if its sudden stock market drop (-6.5%) was halved the next day. The cause of the engine failure equipping the Cathay Pacific Airbus A350-1000 seems to have been well identified and its bill seems likely to be limited.
Given that the Trent 1000 problems equipping Boeings had led to additional costs of 2.4 billion pounds between 2017 and 2022, this initial reaction of incinerating value of 2.7 billion may surprise by its severity. But the durability of the A350 engines had been debated by some customers. Enough to expect a possible volatility of the price, according to the experts at AJ Bell.
Record and level
The flight plan of the boss, Tufan Erginbilgic, at the helm since the beginning of 2023, can however remain relevant. The tightening of the operating screws (reducing costs and generating cash) makes it possible to resume dividend replenishment a year ahead of schedule.
Supporters of the London blue chip are therefore crossing their fingers, hoping to hold the level close to the historic record broken last month, at the end of a spectacular take-off (+400%) that lasted eighteen months. The nosedive of stock market stories put on the fence due to exhausted fuel is not necessarily inevitable.
