Rolls-Royce plunges to worse than expected over Sh500billion loss

Rolls Royce trent engine at a display in Singapore (PHOTO: Reuters)

British engine-maker Rolls-Royce plunged to a worse than expected 4 billion pound ($5.58 billion) loss in 2020 as the pandemic stopped airlines flying, but stuck to its outlook for cash outflow to improve in 2021.

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 pounds from shareholders and in loans to buffer against the uncertainty.