Engine-maker Rolls-Royce flies back into profit

LONDON (AFP) – British aircraft engine maker Rolls-Royce yesterday announced a return to half-year profits on slashed costs after crashing into a huge loss one year earlier as the pandemic hammered aviation.

Rolls posted a net profit of GBP393 million compared with a loss after tax totalling GBP5.38 billion in the first half of last year.

Rolls, which operates in the air, defence and energy sectors, has slashed thousands of jobs as it seeks to navigate damaging fallout from the coronavirus outbreak.

The company expects to save more than GBP1.0 billion this year, it said in the results statement.

“This leaner cost base together with a strong liquidity position gives us confidence in our ability to withstand uncertainties around the pace of recovery in international travel and benefit from the eventual rebound,” added Rolls-Royce Chief Executive Warren East.

The Rolls Royce Trent XWB engine displayed during an airshow in Singapore. PHOTO: AFP