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Rolls-Royce supported by defence contracts

The aerospace engineer is sweating on the recovery of civil aviation traffic, but other parts of the business are providing encouragement for shareholders
Rolls-Royce supported by defence contracts


  • Defence contracts partially mitigate civil aviation rout
  • Free cashflow positive "sometime during the second half"

By now, shareholders in Rolls-Royce (RR.) will know that it may be a while before take-off. The aerospace engineer is taxiing down the runway, while politicians and health officials debate whether to ease the restrictions that have devastated long-haul travel. By the end of June, LTSA (large engine long-term service agreements) flying hours stood at 43 per cent of 2019 levels, up from 34 per cent in H2 2020.

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