Rolls-Royce fixes engine problems and looks to its next big challenge

Inside a 100-year-old building at Rolls-Royce’s factory in Derby, technicians are taking apart aircraft engines. These engines have been used for a few years, travelling around the world.

Workers use cranes to move the engines. Then, engineers separate the different parts. These parts are cleaned, sometimes treated with acid, and then repaired or replaced. In one area, the strong smell of kerosene shows where engineers work on the engine's core. This core is about one metre wide. Inside it, fuel and air mix under high pressure to power the turbines, which push large planes through the sky.

This work is very important for keeping the world's airplanes flying. However, in recent years, Rolls-Royce engines, especially the Trent models, had frequent problems. There were issues with durability, such as cracks in the turbine blades. This caused disagreements with airlines and hurt the company's stock price. Rolls-Royce is one of Britain's most famous manufacturers.

When Tufan Erginbilgiç became chief executive in 2023, he said the company was like a burning platform, meaning it was in serious trouble and needed to change quickly. But now, the problems seem to be gone. In 2025, the company's main profits increased by 40% to £3.5bn. Its share price is now over £13, which is 10 times higher than it was three years ago.

The global aviation industry is preparing for a major airshow in Farnborough, near London. This event is a chance for company leaders to review the situation. Engine makers have good reasons to be happy. Flying is gradually recovering after the Covid pandemic. Also, increased defence spending, which started after Russia's invasion of Ukraine in 2022, has led to more orders.

Rolls-Royce has also seen high demand for generators used in AI data centres. Furthermore, shareholders are excited about the company's plans to return to the very large market for narrowbody jet engines. These are the engines used on smaller, single-aisle aircraft. However, before this, Rolls-Royce had to fix the problems in its main business.

When Erginbilgiç started, fixing the Trent engine issues and finding solutions for airline customers was a top priority. He allocated £1bn to improve the durability of the Trent engines and increase the capacity for maintenance, repair, and overhaul (MRO) services.

Rolls-Royce's Trent engines are used on larger, twin-aisle planes, like the Airbus A330, A350, and A380, and the Boeing 787 Dreamliner and 777. Each of the 68 blades inside the engine, about 10cm long, faces extreme forces while producing power similar to a Formula One car. This happens at temperatures near 1,800C, which is much hotter than the melting point of steel.

The blades are made from a special nickel and aluminium alloy called superalloys. These materials become stronger at high temperatures. However, even these blades eventually show wear. Signs of this wear can be seen on the blades brought to the Derby factory.

To stop the cracking, changes were made to the pattern of small holes in the blades. This improves airflow, helping to cool the blades by 40%. Weight was also removed from the top of the blades to reduce the forces they experience.

These improvements will allow the engine to stay on aircraft wings three times longer, instead of being taken apart for repairs. This means fewer interruptions for airlines. Nearly half of the Trent 1000 engines have already been updated with the new blades, and the company expects to finish replacing them all by next June.

Airlines might wonder why these improvements weren't made sooner. Rolls-Royce's senior vice-president for customers, Celine Bouas, explained that the upgrades were delayed because of certification issues. These were partly caused by problems at Boeing with its 737 Max aircraft. Although Rolls-Royce does not make engines for the Max, regulators faced accusations of being too close to Boeing, which slowed down all certification processes.

Rolls-Royce faces a difficult situation. Its financial performance is now strong, but airlines are questioning why the company isn't sharing more of these profits with them, considering the long period they suffered from reliability issues.

Bouas stated that the company needed to fix the engines and improve its MRO services so that all customers could start to notice a positive difference. She admitted that the problems caused pain and significant costs for Rolls-Royce, including lost revenue and investment in the product and MRO. She emphasized that the investment was necessary for both Rolls-Royce and its customers.

The improvements are helping to attract new customers. A 1% increase in fuel efficiency can save an airline $500,000 per year. Bouas mentioned that the company is very close to a deal with an airline that has exclusively used engines from US rival GE and its French partner Safran for many years.

Rob Watson, Rolls-Royce's president for civil aerospace, expressed confidence that the company has met its commitments and, in some areas, even exceeded expectations from two years ago.

Besides fixing the Trent programme, another priority for Erginbilgiç was to stop investing in areas that distracted from the main business. For example, the company sold its electric propulsion division, which affected hopes for decarbonising aviation. However, the company continued to invest heavily in its next-generation engine technology, called UltraFan.

Rolls-Royce executives believe the company can continue to grow without returning to the narrowbody market. However, the potential of this market is undeniable. Rolls-Royce exited the market for narrowbody jet engines in 2011. Since then, this market has seen significant growth as airlines focus on direct flights.

Two versions of the UltraFan engine are being developed: one for widebody aircraft producing 80,000 pounds of thrust, and a smaller version for narrowbody aircraft producing 30,000 pounds of thrust. The 30,000-pound version is still in the concept stage, with testing planned for 2028. The 80,000-pound version is the first priority, and Rolls-Royce recently connected its power gearbox to the engine's core.

Rolls-Royce is seeking support from the UK government for these investments. It faces a potential small delay while a new government reviews its options. Both engines are being designed for new aircraft models that have not yet been announced. This suggests that Rolls-Royce will likely not try to fit the UltraFan engine onto existing planes.

Watson explained that the development of the large engine will be driven by the next generation of widebody aircraft. He believes this significant technological advancement will probably require a new aircraft design.

Erginbilgiç has made it clear that Rolls-Royce would prefer to share the large investment required to re-enter the narrowbody market. Watson added that while the company could do it alone, a partnership would reduce the risk and ensure they offer the best technology and commercial structure to the market.