World-famous British Airline engine maker and car maker Rolls Royce Reports £4 Billion ($5.6 Billion) Loss In 2020, as the pandemic stopped travel and airlines, which stopped all their business.
Rolls Royce’s airline business model earns money for the number of hours its engine fly, which drastically plunge last year. Covid 19 has affected all the business around the world but the travel business has suffered the loss most.
After facing the pandemic Rolls Royce is now in 7.3 billion pounds debt, in which 5 Billion pounds are raised from shareholders to handle the uncertainty of covid.
Rolls Royce engine aircraft flew only 43% of the time last year than they flew in 2019, and in 2021 they will do their best to rise it to 55%, Rolls Roys Ceo said “2020 was the worst year for them, which is gone now, and all the upcoming years will be good for them”.
Rolls Royce also said its liquidity position is still strong that it can survive an even worse downside scenario.
The strategy of rolls Rolls Royce to recover from the 5.3 billion pounds debt it takes in 2020 is to sell its assets worth 2 billion pounds, which will be Spain-based ITP.
Rolls said: “Our planned sale of ITP Aero is progressing well with ongoing conversations with a number of potential buyers.”
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