'As long as it lasts': Rolls-Royce says can weather crisis despite record loss

Rolls-Royce has enough funding to weather the crisis in the aviation industry caused by the pandemic, its CE said Thursday, after the engine maker plunged to a record GBP4b ($5.6b) underlying loss for 2020. The British company said its cash burn should halve this year, and turn positive in the second half as vaccinations kick in and travellers return to the skies. “The worst is now well behind us,” CEO Warren East said. But even if that proves optimistic, Rolls is well placed to cope with more turmoil after a drive to cut costs and raise funds, he added. “We have our cash burn under control ... We have ample liquidity to get through this crisis as long as it lasts,” East said. Rolls’ model of charging airlines for the number of hours its engines fly meant much of its income dried up last year when travel stopped, forcing it to ask shareholders for cash and take on GBP5.3b of new debt.<br/>