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Rolls-Royce reports strong start as engine flying hours return to 2019 levels

Published 23/05/2024, 08:13
© Reuters.  Rolls-Royce reports strong start as engine flying hours return to 2019 levels
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Proactive Investors - Rolls-Royce Holdings PLC (LON:RR) chief executive Tufan Erginbilgic said the engine maker made a "strong start" in the first four months of 2024 and maintained guidance for the full year.

Rather than revenues or other metrics, the statement provided an update on the most keenly watched metric for the FTSE 100-listed group, the long-term service agreement large engine flying hours (EFH) at its civil aerospace arm.

This figure was said to have returned to 100% of the levels from pre-pandemic 2019, which was lower than some more optimistic analysts expected.

A key driver was the continued recovery of international air traffic in Asia and the growing fleet of aeroplanes that have RR engines installed. Erginbiglic said.

Ahead of the company's annual shareholder meeting later, Erginbilgic said expectations for full-year large EFH at 100%-110% of 2019 levels, 1,300-1,400 shop visits and 500-550 OE deliveries were all unchanged.

He said the company also remained on track to deliver the annualised sustainable benefit of around £200 million by the end of 2025.

"We have had a strong start to the year, despite continued industry-wide supply chain challenges. This builds on our record performance in 2023 and provides further confidence in our guidance for 2024," Erginbiglic concluded.

"The focused investments we are making will continue to drive growth and create value for all our stakeholders in the mid-term and beyond."

Read more on Proactive Investors UK

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