China Eastern said the crew on Flight 736 noticed damage to the air inlet on the left engine after takeoff Sunday evening and the captain made a decision to return to Sydney, Australia.
The engine failure in Sydney resembles another recent incident.
China Eastern is now investigating the cause of the incident together with the Australian Transport Safety Bureau.
China Eastern Airlines are yet to release an official statement regarding the incident.
The cause of the damage is unknown but the incident is being investigated. The Airbus A330 plane has two engines.
"Looks like the engine casing or cowling has ripped off, forward of the fan - the main initial compressor blade - it's ripped clean off". "It appears to be on engine one which is the left engine".
The audio sent social media into a spin, with some suggesting the pilot was trying to say "fault" and others pointing to a slip of the tongue.
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Herrera said Farhana has been transported away from Marawi City to a "safe place", and is now currently undergoing investigation. Temporary martial law has been declared for 60 days in Mindanao, one of the three main islands in the Philippines .
"I guess Rolls Royce, the manufacturer of the Trent series of engines, will be now be rapidly finding out the cause of this engine " blow-up" and issuing instructions to airlines if any action such as immediate inspection is required".
Passengers said the crew cleared the seats near the affected engine.
"It is very unusual", said Mr Jensen.
China Eastern Airlines representative Kathy Zhang also said that there will be many parties, including the governments, involved in the investigation, as "the engine for the aircraft is a big issue". It returned to Sydney where it landed safely and passengers were evacuated with no injuries.
Nor was there any obvious sign of external damage to the adjacent sections of the wing and fuselage of the China Eastern A330 to the failed engine.
"After landing at the airport, everybody applauded and some foreign passengers asked for beer to celebrate", she wrote.