"Rolls-Royce has brushed aside investor jitters over the war in Iran, telling shareholders it remains firmly on course to deliver at least £4 billion of underlying operating profit this year, with engine flying hours running 15 per cent ahead of pre-pandemic levels."
"The market's anxiety has been understandable. Rolls-Royce's civil aerospace division leans heavily on long-haul carriers operating through the Gulf, and the threat of a blockade in the Strait of Hormuz raised the spectre of jet-fuel shortages, route cancellations and a fresh bout of pain for an engine maker still scarred by the pandemic-era grounding of the global fleet."
"Crucially, Rolls-Royce reported a 'significant recovery' in Middle Eastern airline activity, with flying hours on the Airbus A350, powered exclusively by the company's Derby-built Trent XWB, its single largest revenue line, having 'fully recovered to pre-conflict levels'."
Rolls-Royce reassured investors of its financial stability, projecting at least £4 billion in operating profit this year. Engine flying hours are 15% above pre-pandemic levels. The company faced a 20% drop in stock value due to geopolitical tensions but reported a significant recovery in Middle Eastern airline activity. Engine flying hours for the Airbus A350 have returned to pre-conflict levels, and the company maintains its full-year guidance of 115 to 120% of 2019 levels.
Read at Business Matters
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