A significant, long-standing contract has erupted into a legal confrontation between Rolls-Royce and United Airlines. The dispute centers on engine supply and maintenance agreements, throwing the future of a delayed order for 45 Airbus A350 aircraft into question. This development emerges at a sensitive time for the British engine manufacturer, just ahead of its upcoming annual results announcement.
The Heart of the Conflict
In a mandatory filing with the U.S. Securities and Exchange Commission (SEC), United Airlines disclosed an ongoing contractual dispute with Rolls-Royce. A critical detail in the filing is the airline’s removal of any specific delivery timeline for the 45 Airbus A350 jets it has on order. While the aircraft remain listed in United’s plans as future additions “after 2027,” all scheduled dates have been erased.
This conflict strikes at a crucial point for Rolls-Royce, as it is the exclusive engine supplier for the Airbus A350, providing the Trent XWB model. Failure to reach an agreement introduces substantial uncertainty regarding whether United will ultimately accept delivery of these wide-body planes.
A $175 Million Payment at the Center of the Disagreement
According to the SEC documentation, the disagreement traces back to contracts from 2010 covering engine purchases and related maintenance services. As part of those agreements, United made a “commitment payment” of $175 million to Rolls-Royce in 2017.
United’s position is that Rolls-Royce violated terms of the contract in December 2025. Consequently, the airline is demanding the return of the $175 million, plus additional contractual premiums. The filing states that Rolls-Royce has not made this repayment and instead terminated the agreements. For its part, Rolls-Royce contends that United is the party that breached the contracts.
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A company spokesperson for Rolls-Royce indicated they are “aware of the matter” and are “confident in our position.” The manufacturer also emphasized a desire to resolve this “historical issue” and strengthen the partnership, though it declined to provide specifics due to the ongoing legal process.
Key Facts of the Case:
* Disclosure Date: February 12, 2026 (via United’s SEC filing)
* Order in Question: 45 Airbus A350 aircraft
* Core Dispute: A $175 million payment made in 2017
* Original Order Placed: 2009
* Engine Supplier: Rolls-Royce Trent XWB (exclusive to the A350)
Investor Implications and Market Timing
The A350 order with United is considered one of the aviation industry’s most protracted procurement stories. Initially placed in 2009, it has been reconfigured multiple times, switched between aircraft variants, and repeatedly postponed. United’s decision to delete the delivery schedule altogether acts as a warning signal for the order’s progression, even though the jets technically remain in its order book.
Furthermore, United hinted in its filing that it is assessing the impact on “other parties,” which appears to be a reference to Airbus. The European plane-maker has not publicly commented but continues to list the order in its official backlog.
Market observers are likely to scrutinize this dispute closely due to several imminent events for Rolls-Royce. The company’s shares are currently trading at €15.02. Rolls-Royce is scheduled to release its full-year 2025 financial results on February 26. Prior to that, on February 24, the company is set to complete its ongoing £200 million interim share buyback program.
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