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26 Jan 2021 | 07:01

Rolls-Royce lowers engine flying hours guidance

(Sharecast News) - Rolls-Royce lowered widebody engine flying hours to 55% of 2019 levels from a 70% base case forecast last October, adding that it expected to lose £2bn in cash as a result. The company on Tuesday cited short-term market uncertainty caused by new variants of Covid-19 and enhanced travel restrictions for the revision.

It expected to turn cash flow positive "at some point during the second half, reflecting our forecasted profile of flying hours as they recover from today's low base".

"Though significant uncertainty remains over the precise shape and timing of the recovery in air traffic and the phasing of engine concession payments, free cash outflow this year is forecast to be heavily weighted towards the first six months," Rolls said.
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