Rolls-Royce expected to post a half-year loss of £1.1bn in its results
Rolls-Royce is expected to post a half-year loss of £1.1billion in its results this week.
Demand for the Derby firm’s jet engines has been smashed by the global collapse in air travel, pushing shares to their lowest level since the financial crisis in 2009.
It scrapped its dividend in April for the first time since 1987 and is axing 9,000 jobs.
Suffering: Rolls-Royce scrapped its dividend in April for the first time since 1987 and is axing 9,000 jobs
Civil aviation contributes half of Rolls-Royce’s £15billion annual sales, but planes remain grounded and airlines are cutting fleets to fight bankruptcy.
Virgin Atlantic has warned it will run out of money by the end of September if creditors do not vote for a £1.2billion rescue package tomorrow.
Rolls-Royce is undertaking its third major restructuring in six years and analysts estimate it needs to raise £6billion.
The FTSE100 company, which also services engines, relies particularly on big long-haul aircraft, which is likely to be the last sector of the industry to recover.