British engine manufacturer Rolls-Royce Holdings expects the commercial flight market to recover by early next year, counting on current industry forecasts. The manufacturer says that it has 70pc of its 2022 schedule covered by its £1.2bn ($1.67bn) order backlog.
In its half-yearly report, the company said that it delivered 100 engines for the civil aerospace sector in H1 2021. Rolls also noted that domestic travel within the UK is already near pre-pandemic levels. However, it says that international travel is recovering at a comparatively sluggish pace as it depends on mass vaccinations. Since it also services engines, the company noted that flying hours have risen 34pc from H2 2020.
Rolls has decided to cut its workforce by 9,000 employees by the end of 2022. It will also sell off a few divisions, namely ITP Aero, Bergen Engines, and Civil Nuclear Instrumentation & Control. These divestitures are expected to raise £2bn for the firm.
Rolls-Royce posted revenue of £5.15bn in H1 2021, down from £5.67bn in H1 2020. Net profits in H1 2021 were realised at £394mn, compared with a net loss of £5.2bn in the prior-year period.