Rolls Royce said its restructuring plans are on track to deliver £1.3 billion in cost savings by 2022 in a trading update.
It expects to turn cash flow positive at some point during the second half of 2021, targeting at least £750 million free cash flow as early as 2022 and at least £2 billion from disposal proceeds.
In the 11-month period to end November engine flying hours were approximately 42% down on the previous year due to the impact of Covid-19.
The company said that business aviation has continued to see less of an impact than scheduled commercial flights and that its defence business has remained resilient with good cash conversion.
Warren East, chief executive of Rolls Royce, said: “We have made rapid progress on our restructuring programme and the consolidation and reorganisation of our civil aerospace footprint is well underway. Our £5 billion recapitalisation package in November was well supported and has increased our resilience and strengthened our balance sheet.
“The outlook remains challenging and the pace and timing of the recovery is uncertain. However, our actions have given us a strong foundation to deliver better returns as our end markets improve and we continue to drive our ambition of delivering more sustainable power to support the creation of a net-zero carbon economy."
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