Rolls Royce returns to profit but warns over international travel recovery
Engine-maker Rolls-Royce returned to profit in the first half of 2021, but warned the international aviation industry is not set to recover until after 2022.
The Derby-based group says its made £393 million for the first six months of the year, which is a significant improvement after losing £5.4 billion a year ago.
It said international travel will bounce back once border restrictions are lifted, but warned that the recovery will take longer than first forecast.
The engineering group, whose largest division is in aerospace manufacturing, suffered as the pandemic hammered the global aviation industry.
Chief Executive, Warren East, says the company will take swift action to cut costs and rase extra capital to strengthen its profits by the end of 2022.
As a result 9,000 jobs could be cut worldwide - two-thirds of which will affect the UK - and Rolls confirmed around 8,000 have already gone.
The firm has also said its goal to raise at least £2 billion from selling off some parts of the business is also "progressing well".
The chief executive said the expansion of the travel list is "a very encouraging" sign, but added that, while domestic and business travel markets are recovering, international travel is still lagging behind.