Investors will keep their fingers crossed next week hoping the recent turbulence in air travel won’t impact Rolls-Royceforecast of.
Restrictions imposed by several countries to include the Omicron version have again affected long-haul flight.
Rolls makes engines for large planes but makes money maintaining them, and a large portion of its revenue depends on the number of hours they fly.
Rolls-Royce shares have risen nearly 20 percent since September, but are still well below their pre-pandemic levels
When issuing a trading update next Thursday, Citi would like to indicate the extent of losses for Omicron on the rolls’ recovery. The shares have gained nearly 20 per cent since September.
Half-year results released in August showed surprising gains as it benefited from major cost-cutting that included the reduction of 9,000 of 52,000 jobs, raising £5bn and aiming to sell at least £2bn of businesses . But much still remains to be done.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdowne, said: ‘Production and servicing [long-haul] The aircraft engine business has not been doing well in the last 18 months. For this, we are not expecting a complete change in fortunes.’
Analysts and shareholders are monitoring any updates on its small modular reactor program, which aims to build a fleet of mini nuclear power plants in the UK by the early 2030s.
The company running the project, in which Rolls holds an 80 percent stake, recently received £195million in funding from private investors and £210m in government grants.