Rolls-Royce PLC (LON:RR.) has made slower progress than expected in resolving the blade deterioration problems on the Trent 1000 engine.
Some 25 airliners remain grounded and a further £100mln has been set aside to cover the costs of tackling the problem.
Rolls-Royce took hefty provisions for the Trent 1000 last year and their absence boosted the latest interim results although cash outgoings doubled to £219mln.
Revenues over the half-year rose by 5% to £7.88bn while there was a swing to an operating profit of £83mln from a £747mln loss.
Warren East, chief executive, forecast a much better second half as trading picks up in civil aerospace and power systems.
Unwinding stock positions will also boost the cash position, said East.
“We have made good progress on resolving the Trent 1000 compressor issue, though regretfully, customer disruption remains.
“Progress on our restructuring programme is in line with the plan we outlined a year ago.”
Shares eased 1.7% to 800.8p.