3 reasons why I avoid sharing Rolls-Royce like the plague!

The continued recovery in the airline industry has been strong Rolls-Royce (LSE:RR) shares the stratosphere. Shares of the developer are up 151% in the past year alone.

With continued restructuring to increase profits, again, I wouldn't be surprised if Rolls' share price continues to rise. City analysts are predicting strong income growth through 2026, which, if correct, will support further price gains.

That said, there are also potential headwinds for the company. And with a forward price-to-earnings (P/E) ratio of 30 times, signs of weakness could cause the share price to drop.

I am not willing to buy FTSE 100 engineer, and especially at current prices. Here are three reasons why.

#1: Types of Supply chain

Let's talk about supply chain issues in the aerospace industry first. Several engineers (including Rolls itself) have warned of the threat of getting parts in 2024. The elder it even warned on profits last week due to supply chain problems Airbus again Boeing.

Today, Roll was in the background AG-owned by British Airways said it has canceled hundreds of long-haul flights. This was because “delays in the delivery of engines and parts from Rolls-Royce“, the airline told Reuters, adding (rather worryingly) that,”we do not believe that the issue will be resolved quickly“.

Rolls has previously warned that supply-related problems could last for two years. While it says “we manage continuously” such problems, Monday's news suggests that finding a challenge is difficult.

#2: Technical issues

Product failure is a constant threat to developers. Unfortunately, Rolls has also made headlines for hardware-related issues affecting the fuel nozzles on the Trent XWB-97 power unit.

Last month, Cathay Pacific grounded dozens of flights after engine trouble on one of its Airbus A350s forced it to turn around mid-flight. The European Union Aviation Safety Agency (EASA) ordered an investigation of the Trent XWB-97 units after the results, which may be released soon.

EASA described the tests as “self defense“, but a negative outcome could seriously damage Rolls' profits, not to mention its reputation.

#3: Landing a public plane

My final concern with Rolls has to do with the broader state of the civil aerospace market.

Defense revenues remain strong and look set to remain so as the geopolitical climate worsens. The company could also see revenue as countries ramp up the construction of small nuclear power plants.

However, Footsie's company still relies on strong engine and aftermarket demand from airlines to drive earnings. And news from other major carriers (like The Delta again American Airlines) has been less encouraging of late as the post-Covid travel boom peters out.

This cooling could continue, too, if the US and Chinese economies struggle to hold on. Rising oil prices could also exacerbate the economic downturn if the crisis in the Middle East worsens.

I don't think these threats are listed in the sky high Rolls-Royce. So I would like to buy some UK shares right now.