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PARIS - RTX’s Pratt & Whitney unit has signed a 12-year EngineWise comprehensive maintenance services agreement with Cebu Pacific for the airline’s GTF engine fleet, according to a press release statement issued Monday.
The agreement will cover the GTF engines Cebu Pacific ordered in 2024, including those for up to 152 A321neo aircraft announced in July 2024 and engines for 15 A320neo family aircraft announced in February 2024.
Under the terms of the agreement, Cebu Pacific will receive technical expertise, fleet data, and business intelligence to enhance maintenance planning predictability. The deal is structured to align the airline’s maintenance costs with engine utilization.
"The GTF engine has enabled up to 20% reduction in fuel burn compared to previous-generation engines," said Mike Szucs, chief executive officer of Cebu Pacific.
Cebu Pacific currently operates 56 Pratt & Whitney powered aircraft. The relationship between the two companies dates back to the 1990s when Pratt & Whitney supplied JT8D engines for the airline’s DC-9 aircraft fleet.
Cebu Pacific is the Philippines’ largest carrier, serving 37 domestic destinations and 26 international destinations across Asia, Australia, and the Middle East. The airline operates a fleet of 98 aircraft including Airbus A320, A321, A330, and ATR aircraft.
Pratt & Whitney is a division of RTX (NYSE: RTX), which reported 2024 sales of more than $80 billion.
In other recent news, RTX Corp has been active with several significant developments. The company secured a $1.1 billion contract from the U.S. Navy to produce AIM-9X Block II missiles, marking a milestone for the program. Additionally, Raytheon, a unit of RTX, received a $646 million contract to manufacture AN/SPY-6(V) radars for the Navy, adding to a larger contract potentially worth $3 billion. These contracts underscore Raytheon’s pivotal role in advancing U.S. defense capabilities.
Meanwhile, Jefferies raised its price target for RTX to $155, reflecting expectations of margin growth in its Pratt & Whitney division, although it maintained a Hold rating. On the innovation front, Collins Aerospace, another RTX unit, announced the opening of a new engineering hub in the UK and a production line in France to enhance its aircraft electrification capabilities. This expansion is part of Collins Aerospace’s strategy to support sustainable aviation.
These developments come amid heightened global defense tensions, following recent military actions in the Middle East. As RTX continues to secure substantial defense contracts and expand its technological capabilities, these moves are closely watched by investors and industry analysts.
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