Rolls-Royce Maintains 2024 Engine Guidance Amid Strong Demand

Rolls-Royce Aircraft Engine

Rolls-Royce, the renowned UK-based aircraft engine manufacturer, has reaffirmed its 2024 guidance for original equipment (OE) deliveries and shop visits, citing robust demand in both business and widebody aviation sectors. The company remains confident in achieving its targets despite ongoing supply chain challenges affecting the aerospace industry.

Stable Outlook on Key Metrics

Rolls-Royce projects large engine flying hours to reach 100-110% of 2019 levels, alongside 500-550 OE deliveries and 1,300-1,400 shop visits. These projections align with its previous forecasts, underscoring sustained demand for widebody engines as global aviation recovers.

Additionally, Rolls-Royce is progressing toward FAA certification for an enhanced high-pressure turbine (HPT) blade for its Trent 1000 TEN engine, a critical development set to double the engine's "time on wing." Flight testing of the blade commenced earlier this year, marking a significant milestone in improving operational efficiency for engines powering the Boeing 787 Dreamliner.

Challenges and Competitive Landscape

While Rolls-Royce maintains steady guidance, the wider industry faces hurdles. Airbus, a key player in the aviation market, recently reported supply chain challenges that could impact its A350 widebody program, particularly in 2025. Despite these disruptions, Airbus targets a production rate of 12 A350s per month by 2028. Rolls-Royce’s titanium requirements, linked to the A350 program, are expected to dip in 2024 before rebounding in 2026.

The company's Trent 1000 engine competes directly with GE Aerospace’s GEnx for market share in powering the Boeing 787. However, Rolls-Royce remains unaffected by Boeing's delays in 777X deliveries, as this aircraft relies exclusively on GE's GE9X engines.

Rolls-Royce's resilience amid constrained supply chains highlights its strategic focus on innovation and maintaining strong relationships with aviation manufacturers. Its steady performance signals confidence in meeting rising demand for efficient, high-performance engines in the global aviation market.