Rolls-Royce (LON:RR) shares sunk in early trading on Friday, after warning engine customers that it would be conducting further inspections of its Trent 100 Package C series.

The further inspections are likely to cause more disruption to customers, as well as increasing cash costs for Rolls-Royce.
However, the company sought to calm investors by saying it would absorb the costs by ‘reprioritising various items of discretionary spend’.

The warning comes after previous indications from Rolls-Royce that there were reliability issues with the engines’ compressor systems.

“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,” chief executive Warren East said.

“We will be working closely with Boeing and affected airlines to minimise disruption wherever possible.”

The company maintained its guidance for 2018 free cash flow at £450 million, give or take £100 million.

Shares in Rolls-Royce are currently trading down 1.82 percent at 865.20 (0853GMT).