LONDON, March 17, 2026, 15:40 GMT
Shares in Rolls-Royce Holdings tacked on about 1.6% in delayed London action Tuesday after the company announced it landed 64 million euros in European Union funding via the Clean Aviation programme. The funds are earmarked for the UltraFan 30 demonstrator, Rolls-Royce’s next-gen engine effort targeting the single-aisle jet market. Delayed quotes put the shares near 1,250 pence, a move up from 1,230 pence at Monday’s close. 1
The funding plays a key role as UltraFan anchors Rolls-Royce’s effort to re-enter the single-aisle jet market—a segment the company calls vital for aviation’s future growth. Last month, Reuters flagged Rolls-Royce’s request for UK support on what could become a 3 billion-pound project. Back in February, the company raised its outlook and announced a 7 to 9 billion pound buyback after reporting a 40% rise in 2025 profit. 1
Tuesday’s rise adds to a string of positive news. On Monday, Rolls-Royce announced Atlas Air Worldwide would buy 40 Trent XWB-97 engines to power 20 Airbus A350F freighters. Reuters reported that with this purchase, Atlas Air has become the largest customer to date for the new Airbus cargo jet. 2
Rolls-Royce said in a statement Tuesday that the UNIFIED consortium—Airbus, ITP Aero, Lufthansa Technik, Imperial College London, and several other European firms—will put the grant toward ground testing planned for 2028. “An important step” is how Alan Newby, director of research and technology, described the award, pointing to its role in moving closer to a future narrowbody use. 1
The funding arrives amid an intensifying technology contest. Back in February, Reuters noted that CFM International—the joint venture between GE Aerospace and Safran—is weighing both open-fan concepts, featuring a prominent exposed fan, alongside more traditional engine configurations for upcoming aircraft. Boeing, on the other hand, has shown greater hesitation toward open-fan solutions, finding support from Pratt & Whitney and Rolls-Royce on that front. 3
Shares haven’t climbed back to the 1,420-pence 52-week peak hit post-February results. Richard Hunter at Interactive Investor, quoted by Reuters, described those results as “sparkling” after Rolls-Royce bumped up its mid-term profit targets. Tuesday’s gain points to investors rewarding the company for ongoing order momentum and backing on funding. 4
The road ahead looks bumpy. According to Reuters, airlines have pushed engine manufacturers on both repair costs and durability, and United Airlines last month revealed it’s in a contract spat with Rolls-Royce regarding A350 engines. The bigger hurdle: UltraFan still faces a hefty funding challenge before transitioning from a demonstrator to a full-scale program. 5
Tuesday’s bounce partly tracked broader market moves. According to Reuters, the FTSE 100 had gained 0.6% by 1042 GMT, with energy and banks pushing higher before the Bank of England’s decision this week. 6
Still, Rolls-Royce has managed to land a short-term commercial gain alongside progress on a longer-range tech effort. According to its Atlas Air update, the third Trent XWB-97 durability package is slated to hit service in 2028, aiming to double time on wing—especially where operating conditions are rougher and overhaul cycles shorter. Clean Aviation, on the other hand, described the UNIFIED project as potentially a “decisive step” toward getting lower-emission aircraft into service by 2035. 2
