Rolls-Royce share price sinks as company shoulders blame for cancelled Dreamliner flights

 
Hayley Kirton
Follow Hayley
A visitor looking at a Rolls Royce Trent
Nine flights have been cancelled for tomorrow (Source: Getty)

Shares in Rolls-Royce Holdings tumbled today after fingers were pointed at the engineering firm for multiple cancelled flights in Japan.

Japanese airline company ANA Holdings revealed today it needed to call off some of its Dreamliner flights because it now has to replace components in the Rolls-Royce engines in some of its Boeing 787 fleet.

A total of nine domestic flights have been cancelled for tomorrow.

A Rolls-Royce spokesperson said:

We are aware of the situation and are working closely with ANA to minimise the effect on aircraft service disruption.

There is no impact on other Rolls-Royce engine programmes.

Shares in Rolls-Royce Holdings closed down 1.8 per cent at 774p. However, at one point, share price dipped as low as 770p.

Last month, the engineering company reported its underlying pre-tax profits had sunk by 80 per cent during the six months to the middle of June, thanks partly to a 91 per cent fall in profits at its civil aerospace division. However, as the company had warned investors about its delicate financial condition on several occasions, share price rose dramatically that day.

Shares in Boeing were less affected by the cancelled flight news, closing down 0.2 per cent at $132.98.

A Boeing spokesperson said:

We are aware of the situation and are working with ANA and Rolls-Royce to resolve any issues impacting the airplanes in-service. Boeing continuously works with our customers and engine partners to ensure the safety of the world’s commercial jetliners continues at the highest levels.

Bucking the trend entirely, shares in ANA Holdings, which is listed in Tokyo, closed up 1.6 per cent at ¥279.5.

What you need to know

  1. Peter Stringfellow in his own words: The king of London's nightlife on Theresa May and making money
  2. The shareholders are revolting: Bosses really have received a bloody nose over bonuses this year
  3. Lloyd's of Hong Kong? Insurance boss threatens to quit the City