Rolls-Royce warns Trent 1000 engine problems will lead to higher costs

Issues with engines used for Boeing's Dreamliner aircraft

The engines that require more testing are used in planes

Rolls-Royce warned on Friday that it faces higher costs in 2018 due to problems with its Trent 1000 engines.

The engineering giant said in a statement to the London Stock Exchange that it has decided to carry out additional engine inspections, on top of those already planned, which it disclosed in its results for 2017.

According to Rolls-Royce, the extra inspections are driven by “further understanding of the durability of the Trent 1000 Package C compressor”.

The FTSE 100-listed firm said this will lead to additional disruption for customers, including Boeing, which uses the Trent 1000 in its Dreamliner aircraft, as well as increased costs.

The company said it was “reprioritising various items of discretionary spend” in order to cover the additional inspections.

Warren East, Rolls-Royce chief executive, said: “Our focus is on supporting our customers and doing all we can to minimise any impact on their operations.

“We sincerely regret the disruption this will cause to our customers and 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. We will be working closely with Boeing and affected airlines to minimise disruption wherever possible.”

The company’s cost warning comes days after it announced it was selling its tech business L’Orange to US-based Woodward for £610m, giving a boost to the balance sheet.

Shares in Rolls-Royce dipped more than 1.3 per cent in early trading.