Rolls Royce Trent Engine displayed at the Singapore Airshow in Singapore February 11, 2020. British engine-maker Rolls-Royce plunged to a worse than expected £4 billion (US$5.58 billion) loss in 2020 as the pandemic stopped airlines flying, but stuck to its outlook for cash outflow to improve in 2021, Reuters reports. Rolls-Royce’s model of charging airlines for the number of hours its engines fly meant its income dried up last year when travel stopped. It was forced to raise £5 billion from shareholders and in loans to buffer against the uncertainty. Rolls-Royce posted group underlying pre-tax loss of 4 billion pounds for last year compared to the £3.1 billion loss forecast by analysts.

Source: The Standard March 11, 2021 08:03 UTC