Rolls Royce Says That The Worst is Over After Incurring Record Losses

The CEO of British engine manufacturer Rolls Royce predicted that the worst is over in the Covid-19 crisis, after the company recorded a record basic loss of four billion pounds, equivalent to $5.6 billion, in 2020 after its customers stopped operating flights.

The company said that the rate of capital use in operating expenses will decrease by half this year and may turn to a positive rate in the second half with the spread of vaccinations and passengers returning to flights.

“The worst is already over,” Chief Executive Warren East said. He added that even if the outlook proves to be too optimistic, the company is in a good position to cope with more volatility after efforts to cut costs and raise funds.

“We have abundant liquidity to overcome this crisis, however long it lasts,” he told reporters.