Rolls-Royce reduced its cash outflow by more than £1bn in the first half of the year but cautioned that the external trading environment remained challenging, citing rising inflation and supply chain disruption as key factors.
The FTSE 100 group said free cash outflow, a closely watched figure by analysts, had improved by £1.1bn to £68mn on the prior period, led mostly by increased flying hours of its aero engines that power the world’s large widebody aircraft.
Flying hours had reached 60 per cent of pre-pandemic levels, according to Rolls-Royce, which stuck to its previous guidance that it would generate “modestly positive free cash flow” by the end of 2022.