Rolls-Royce gets boost from Airline delays and long-haul travel revival
Synopsis
Rolls-Royce maintained its 2026 guidance as international airlines expanded long-haul operations and aircraft engine usage stayed above pre-pandemic levels. The company also reported growth in defense deliveries and power systems orders, while global aircraft delivery delays continued supporting maintenance demand for existing widebody fleets worldwide.
Rolls-Royce maintained its financial outlook as strong long-haul travel demand, defense orders, and higher aircraft engine usage supported earnings and servicing activity across global aviation markets.
Key Highlights
- Rolls-Royce engine flying hours reached 115% of 2019 levels in early 2026.
- International airlines continued increasing widebody aircraft capacity on long-haul routes.
- Defense equipment deliveries rose more than 20% year-on-year during the latest quarter.
- Power Systems order backlog stood at £7.3 billion amid energy infrastructure demand.
Rolls-Royce has revised up its 2026 financial outlook following a rise in aircraft engine activity, bolstered by robust demand for travel in the international market and increased usage of widebody aircraft.
In the first quarter of 2026, the company achieved 115% of 2019 flying hours, which is large engine flying hours. The metric is closely related to maintenance and servicing revenues for the engine maker Rolls-Royce, which is responsible for the power systems for long-haul aircraft, such as the Airbus A350.
Airline adds capacity on International routes
The new release is now available as the world's carriers strive to bring back long-haul services cut short during the pandemic. In the past year, carriers from across Asia, Europe and Gulf markets are having widerbody aircraft orders during the rise in international bookings and business travel demand.
The latest traffic data from the International Air Transport Association (IATA) shows that international passenger air traffic continued to recover from the pandemic in early 2026 with levels still higher than before the crisis. Industry analysts have also noted that Boeing and Airbus are still delayed in delivering new planes, compelling airlines to keep their existing aircraft in the air longer, which is also driving up the need for engine maintenance for firms like Rolls-Royce.
The company's full-year engine flying hours are expected to be in the range of 115% to 120% of 2019.
Defense Orders and Power Systems Add Stability
In addition to commercial aircraft, Rolls-Royce said that the latest quarter has seen its deliveries of defence equipment more than doubled from the previous 12 months. Defense business provides engines and systems for naval/aircraft programs in several allied markets.
Higher order intake also was seen in its Power Systems group, driven by expansion in energy infrastructure and data centers. In its latest trading update, the business said it had an order backlog of £7.3 billion.
The profit outlook is unchanged
Rolls-Royce confirmed its 2026 outlook of underlying operating profit in the range of £4 billion to £4.2 billion, as well as free cash flow of £3.6 billion to £3.8 billion.
The company stated that its underlying profit for 2025 was £3.5 billion with revenues of approximately £20.1 billion. Rolls-Royce also kept its multi-year buyback programme, worth up to £9bn through to 2028.
The company's earnings and cash generation helped spark Moody's and Fitch's recent upgrades.
FAQs
Q1. Why are Rolls-Royce engine flying hours rising in 2026?
International airlines are expanding long-haul routes, increasing aircraft usage and engine servicing demand for Rolls-Royce.
Q2. How do aircraft delivery delays affect Rolls-Royce?
Delays at major aircraft manufacturers are keeping older jets in operation longer, increasing maintenance demand for Rolls-Royce engines.
Q3. What businesses are supporting Rolls-Royce growth besides aviation?
Defense contracts, power systems projects, and energy infrastructure orders are contributing to Rolls-Royce revenue growth in 2026.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
