London, June 10, 2026, 10:01 BST
Rolls-Royce Holdings shares climbed in late London trade on Wednesday, rebounding after Tuesday’s slide. Investors looked past more complaints from airlines about jet-engine delays and kept their focus on the company’s profit guidance, which remains strong.
Rolls-Royce shares were last up 1.5% at around 1,244 pence, putting its market cap near £103 billion. The stock opened flat at 1,225.20p after closing there previously, still trading under the 1,420p high for the year.
Rolls-Royce trades on hopes it has turned the corner. The market has paid up for what it sees as a successful turnaround. If new engine issues start to affect airlines more, or bring bigger repair costs to manufacturers, that puts the company’s cash-flow pitch in question. That’s the part investors have been betting on.
Rolls-Royce shares dropped 2.68% to £12.25 on Tuesday, falling more than the FTSE 100’s 1.41% slide. Shares finished 13.72% under their May 29 52-week high. Volume was well under the 50-day average.
Airline CEOs upped the pressure at the industry’s annual meeting in Rio de Janeiro, taking aim at engine makers over delays, repair bills and grounded jets. United Airlines CEO Scott Kirby said a “lack of engines” could be the biggest drag on the industry for at least five years. He also singled out Rolls as the company in his “doghouse.” Reuters
Rolls-Royce was not the only target. Airlines named GE Aerospace and RTX’s Pratt & Whitney engines as trouble spots too. Reuters said GE and RTX both claimed to be spending a lot to boost output and repairs. Rolls-Royce did not respond right away to Reuters’ request for comment.
Kirby alleged Rolls-Royce broke a 2010 deal linked to 45 Airbus A350-1000 aircraft, the Financial Times reported. The A350-1000 is only powered by Rolls-Royce engines. Rolls-Royce told the paper it had met all requirements and was still looking to settle the issue.
Rolls-Royce kept a steady line with investors. CEO Tufan Erginbilgic said in an April 30 trading update the group had a “strong start to the year.” Rolls stuck with its 2026 targets for underlying operating profit at £4.0 billion to £4.2 billion, and free cash flow at £3.6 billion to £3.8 billion. Both figures exclude some one-offs and spending needed to run the business. Rolls-Royce
Civil aerospace is still at the core for Rolls. The company reported large engine flying hours up 5%, now running at 115% of 2019 levels in Q1. Rolls is sticking with guidance for 2026 large engine flying hours to hit 115%-120% of 2019 levels.
That explains how the stock can climb even with headlines about unhappy customers. More flying hours often bring in more servicing revenue. Defence and power systems have also lifted the group’s earnings mix.
Still, valuation looks tight. Investors Chronicle data showed 17 analysts with a 12-month median target of 1,400p for Rolls-Royce. Estimates ran from 1,101p to 1,740p. Consensus sits above Tuesday’s close, but only just above the May high.
But the risk stands out: if airlines push for more pay, more spending on service, or if cash takes longer to come through, the market could question how much of the turnaround is already priced in. Broader market conditions offer little direction. European stocks opened mostly flat on Wednesday as investors watched U.S. inflation data and news of another Middle East flare-up.
