Rolls-Royce Holdings PLC (LSE:RR.) shares were top of the FTSE 100 leaderboard on Tuesday as they rebounded after a sharp fall yesterday on the back of an in-flight failure reported on a Cathay Pacific flight.
The Hong Kong airline halted two dozen flights on Monday to inspect all its Rolls-Royce-powered Airbus A350 jets following the failure of an engine part on Monday.
But Cathay said on Tuesday that expected to complete the "precautionary" inspection by Saturday, after identifying 15 of the long-haul aircraft with affected engine components that required replacement, of which three had already been repaired.
A part failed on one of its A350-1000 widebody planes minutes after take-off from Hong Kong, which the airline said had forced it to cancel the flights.
The engine issue was found on a Rolls-Royce Trent XWB-97 engine.
The airline was inspecting fuel lines inside the engines, the FT reported, citing two people familiar with the matter.
Other airlines have not yet been issued instructions to examine similar engines, with Airbus A350 aircraft still operating for other carriers, according to flight radar data.
A Rolls-Royce statement told the BBC that "it is committed to working closely with the airline, aircraft manufacturer and the relevant authorities to support their efforts."
"As well as providing support and guidance to Cathay Pacific, Rolls-Royce will also keep other airlines that operate Trent XWB-97 engines fully informed of any relevant developments as appropriate."
Analysts at Deutsche Bank said: "While the news raises some concerns, our preliminary analysis is that the financial liability could be contained."
Hence, they said their positive view of the shares was unchanged, keeping their 'buy' rating intact.
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