Rolls-Royce has said an oil fire in one of its Trent 900 engines caused the failure which forced a Qantas A380 superjumbo into an emergency landing.
Passengers on board flight QF32 described seeing the engine burst into flames minutes into a journey from Singapore to Sydney last week, scattering debris over Indonesia's Batam island.
Alongside a trading update, Rolls-Royce said its own investigation revealed the failure was confined to a component in the turbine of the engine, which sparked a fire and led to the release of another part - a turbine disc.
The manufacturing giant has been hammered on the stock market since the engine failure came to light and Sir John Rose, Rolls-Royce chief executive, said the event will have an impact on the group's financial performance this year.
The European Aviation Safety Authority issued an emergency directive on Thursday demanding regular checks on all Trent 900 engines made by Rolls-Royce.
This forced Qantas, which discovered small oil leaks in engines on three separate aircraft, to prolong the grounding of its A380 fleet.
Singapore Airlines grounded three of its 11 A380s after inspections also revealed oil stains, and German airline Lufthansa said it would also perform inspections of engines on its superjumbos.
Rolls-Royce did not explain in its update how or when it would be able to fix the identified problem but stressed safety was its highest priority.
Sir John, who will step down from the company in March after 26 years, said Rolls-Royce had lowered its underlying profit expectations in light of the incident.
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He said: "Safety is the highest priority of Rolls-Royce. This has been demonstrated by the rapid and prudent action we have taken following the Trent 900 incident."
