American Airlines announced a cut in its full-year profit guidance due to a sharp rise in fuel prices over the past few weeks. The carrier expects a $2.3bn increase in fuel costs for this year.
The news caused America’s share price to fall by 6.3% yesterday. Delta Air Lines, United and Southwest have also warned shareholders that the cost of fuel will impact the bottom line, which has also impacted their share price. Southwest said that it expects its fuel costs for the second quarter to rise by 10.5% compared to the prior year period.
On April 6, Brent Crude Oil was $67 per barrel; today it is $73 per barrel. Jet Fuel A is trading at $88.3bbl.
American Airlines chief executive, Doug Parker, described the heightened fuel price as the “new normal”, which would be passed onto the consumer in higher fares.
The US Federal Aviation Agency (FAA) has issued a new airworthiness directive (AD) for 787-8 and 787-9 airplanes powered by Rolls-Royce Trent 1000-A2, Trent 1000-AE2, Trent 1000-C2, Trent 1000-CE2, Trent 1000-D2, Trent 1000-E2, Trent 1000-G2, Trent 1000-H2, Trent 1000-J2, Trent 1000-K2, and Trent 1000-L2 turbofan engines.
This AD requires revising the airplane flight manual (AFM) to limit extended operations (ETOPS). This AD was prompted by a report from the engine manufacturer indicating that after an engine failure, prolonged operation at high thrust settings on the remaining engine during an ETOPS diversion may result in failure of the remaining engine before the diversion can be safely completed. The FAA has determined that updated AFM limitations are needed to minimize the potential for intermediate pressure compressor (IPC) blade failures under certain conditions.
The AD refers to several engine failures of Trent 1000 Package C engines over the past year due to “failed compressor and turbine blades and seals”. The FAA also states that it has received “numerous reports of engine inspection findings of cracked blades resulting in unscheduled engine removals”. Boeing reported to the FAA that the engine manufacturer recently determined that “IPC stage 2 blades have a resonant frequency that is excited by the airflow conditions existing in the engine during operation at high thrust settings under certain temperature and altitude conditions. The resultant blade vibration can result in cumulative fatigue damage that can cause blade failure and consequent engine in-flight shutdown. In the event of a single engine in-flight shutdown during the cruise phase of flight, thrust on the remaining engine is normally increased to maximum continuous thrust (MCT).
During a diversion following a single engine shutdown under an ETOPS flight, the remaining engine may operate at MCT for a prolonged period, during which the IPC stage 2 blades would be exposed to the resonant frequency condition. Therefore, an ETOPS diversion will put the remaining engine at an operating condition that would significantly increase the likelihood of failure of the remaining engine. In addition, if the remaining engine already had cracked IPC stage 2 blades, the likelihood of the remaining engine failing before a diversion can be safely completed will further increase.”
This AD is described as an interim action, while the manufacturer develops a modification to address the unsafe condition identified in this AD.
Meanwhile, CFM has reported that airlines have inspected more than 60% of nearly 700 CFM56-7B engines subject to an emergency order issued late Friday by the FAA and EASA to inspect all fan blades that have been used in more than 30,000 cycles, or in service for about 20 years.
CFM partners GE and Safran Aircraft Engines are supporting airlines with a team of 500 experts to complete the inspections as quickly as possible and help to minimize operational disruption.
As part of the service bulletin CFM issued on Friday, the company also recommends inspections of fan blades with more than 20,000 cycles be completed by the end of August, and inspections to all other fan blades when they reach 20,000 cycles. After first inspection, operators are recommended to repeat the inspection every 3,000 cycles, which typically represents about two years in airline service. Inspections recommended by the end of August for fan blades with 20,000 cycles will impact an additional 2,500 engines. The inspection, conducted on-wing with an ultrasonic probe along the surface of the fan blade, takes about four hours per engine.
The airline operators and CFM say that they are now organising a plan to execute on the next phase of the inspection program.