SHARE OF THE WEEK: Investors hope recent turbulence in air travel will not hit Rolls-Royce forecasts

- Advertisement -


Investors will keep their fingers crossed next week hoping the recent turbulence in air travel won’t impact Rolls-Royceforecast of.

- Advertisement -

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.

advertisement

Rolls-Royce shares have risen nearly 20 percent since September, but are still well below their pre-pandemic levels

- Advertisement -

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.

,

- Advertisement -
Mail Us For  DMCA / Credit  Notice

Recent Articles

Stay on top - Get the daily news in your inbox

Related Stories