( CNN ) -- Qantas has reached a settlement with engine-maker Rolls Royce over a 2010 incident that grounded its entire Airbus A380 fleet . Rolls-Royce agreed to compensate the airline in a deal worth US $ 100 million , Qantas CEO Alan Joyce said at a news conference . The deal was signed Wednesday morning and the terms will be kept confidential , according to Joyce . The settlement brings to an end the legal action between the two parties , Qantas said . The failure of a Rolls-Royce engine in early November resulted in an emergency landing of a Qantas passenger plane at Singapore 's Changi Airport . The flight , carrying 440 passengers and 26 crew , was Australia-bound from Singapore when a fire on the plane 's No . 2 engine not only caused half of the engine casing to fall off in flight , but it also damaged the aircraft 's electrical wiring . Investigators blamed the fire on a potential manufacturing defect in the type of engine that caught fire -- a Trent 900 engine manufactured by Rolls-Royce . The incident caused the airline to ground its six A380s for more than three weeks . At Wednesday 's news conference , Joyce also updated the company 's financial outlook , forecasting annual profit before tax of between US $ 530 million to $ 580 million , despite a major impact from weather events and natural disasters . The airline has lost an estimated $ 219 million due to the Japan earthquake and tsunami , Queensland floods , Cyclones Yasi and Carlos , and the Christchurch earthquake . The Rolls-Royce settlement was included in the profit outlook . Joyce addressed the struggle of Australia 's flagship carrier to turnaround its international business which has n't kept pace with competitors , alluding that major changes will be made later this year . `` The task must be to transition a great airline into a great business , '' he said . A major announcement on the future of the international business will be made on August 24 .
Rolls-Royce agrees to compensate Qantas $ 100 million . The terms of the deal are confidential . The failure of a Rolls-Royce engine in early November resulted in an emergency landing . Engine failure causes Qantas to ground six A380s for more than three weeks .