Rolls-Royce on track amid return to flying and higher defence spending

Chief executive Warren East said the business has made ‘significant progress’ in its recovery.

Henry Saker-Clark
Thursday 12 May 2022 08:10 EDT
Rolls-Royce said it expects to keep up positive momentum during the rest of 2022 (Paul Ellis/PA)
Rolls-Royce said it expects to keep up positive momentum during the rest of 2022 (Paul Ellis/PA) (PA Archive)

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Engineering giant Rolls-Royce has said a gradual improvement in flight demand and higher defence spending by governments has aided trading over the start of the year.

The FTSE 100 firm told shareholders on Thursday that its financial performance over the past four months has been “in line with expectations”.

Chief executive Warren East said the business has made “significant progress” in its recovery from the impact of the pandemic as it was boosted by significant cost savings across its operations.

Rolls-Royce said it expects to keep up positive momentum during the rest of 2022 “despite the ongoing risks around macroeconomic uncertainties”.

In a statement ahead of its annual general meeting, the company said flying hours in its large engine long-term service agreement were up 42% on the prior year, due to increased passenger numbers.

Mr East, who is due to leave the firm at the end of year, said: “In 2021, we delivered improved financial performance and continued to deliver on our commitments.

“As a result of the actions we have taken, we have made significant progress on the path to recovery from the impact of Covid-19 and are emerging as a better balanced and more resilient business with a sustainable future, focused on the long-term business opportunities presented by the global energy transition.

“I would like to thank our colleagues for their commitment and achievements this year and all our stakeholders for their support and engagement.”

Shares in Rolls-Royce were down 0.9% after early trading.

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