Rolls-Royce maintains profit targets despite disruption
The engineering firm expects to mitigate the financial impact of the Iran war as flying hours recover. Strong data center demand helped first-quarter orders.
ROLLS-ROYCE HOLDINGS PLC maintains its 2024 profit guidance of at least 16% growth despite regional flight disruptions in Iran. The United Kingdom-based engineering firm confirmed it will mitigate financial impacts from the conflict that began in late February. Investors view the resilience as a validation of the current transformation strategy, which has driven the stock up 600% since 2023.
### Engine Flying Hours Recover as Capacity Shifts Airlines using engines from ROLLS-ROYCE HOLDINGS PLC to power AIRBUS SE A350 and BOEING CO/THE 787 widebody jets faced severe travel disruptions during the initial weeks of the conflict. While some carriers still face jet fuel shortages and higher costs, ROLLS-ROYCE HOLDINGS PLC reported that engine flying hours in the Middle East are returning to pre-conflict levels. Carriers are also reallocating capacity to other global regions to maintain flight volumes.
