RTX · 10-Q · 2026Q2 · Full report

Pratt & Whitney Engine Issues

RTX Corp · 2026-07-23 · Importance 71 · Surprise 60 · In source text

Pratt & Whitney determined in 2023 that a rare powder-metal condition requires accelerated inspections, part retirements, and replacements across the PW1100 GTF fleet powering Airbus A320neo aircraft. The FAA issued airworthiness directives reflecting Pratt & Whitney’s November 2023 service bulletins and special instructions, resulting in significant incremental shop visits. Aircraft-on-ground levels are expected to remain elevated through 2026, and RTX recorded a $2.9 billion pre-tax operating profit charge in the third quarter of 2023 for customer compensation, inspections, replacement parts, and related maintenance-contract impacts. Other accrued liabilities related to expected customer compensation declined from $0.7 billion at December 31, 2025 to $0.4 billion at June 30, 2026, primarily because customer credits were issued during the six-month period.

Key facts

• Pratt & Whitney recorded a pre-tax operating profit charge in the third quarter of 2023 of $2.9 billion reflecting Pratt & Whitney’s net program share of the PW1100 program. source
• The third quarter 2023 charge resulted in a net increase in Other accrued liabilities of $2.8 billion, principally related to our share of an accrual for expected customer compensation. source
• Pratt & Whitney expects aircraft on ground levels for the PW1100 powered A320neo fleet to remain elevated through 2026. source
• On August 4, 2023, Pratt & Whitney issued a special instruction to operators of PW1100 GTF powered A320neo aircraft which required accelerated inspections and engine removals covering an initial subset of operational engines no later than September 15, 2023. source
• RTX stated that other engine models contain parts manufactured with affected powder metal but they do not currently believe there will be any resultant significant financial impact for those other engine models at this time. source
• During the third quarter of 2023 Pratt & Whitney continued its engineering and industrial assessment and issued guidance via service bulletins and special instructions in November 2023, which has been reflected in airworthiness directives issued by the FAA. source
• At June 30, 2026, RTX had other accrued liabilities of $0.4 billion related to expected compensation to customers. source
• At December 31, 2025, RTX had other accrued liabilities of $0.7 billion related to expected compensation to customers. source

Impact estimates