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No room for luxury in 2020, Rolls-RoyceINTL

No room for luxury in 2020, Rolls-Royce

Rolls-Royce (RR.L) announced a huge £4b loss in 2020, with revenue sinking by almost a third to £11.8b.

Though the company is more commonly known for its bouji cars, it is, in fact, an engineering giant with a huge aviation business. Rolls-Royce’s Civil Aerospace business normally contributes to the bulk of its revenues. And since we all know that planes were also “staying at home” in 2020, this line of business naturally took a toll due to Covid-19.

Ordinarily, Rolls-Royce gets makes engines for plane manufacturers like Boeing (BA) and Airbus (AIR).

why it matters
Despite grim financials, Rolls-Royce's shares were up by 3% as investors remained hopeful about the aviation industry's recovery in the second half of the year. Fingers crossed that worldwide vaccination efforts will allow us all to (safely!) contribute to said recovery soon enough.