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Image source: Rolls-Royce plc
With the war in Iran causing huge problems for the global aviation industry, it’s not surprising that the Rolls-Royce Holdings (LSE:RR.) share price has been falling. As recently as March, the group’s shares were changing hands for over £14. Now (5 May), one could be bought for around a fifth less.
Clearly, the rising cost of jet fuel resulting from a lack of supply is taking its toll on airlines. Lufthansa has announced that it will cut 20,000 European short-haul flights over the summer. Others have made similar decisions. Rolls-Royce generates revenue every time one of its engines is used. Fewer flights will likely reduce earnings. But are investors being overly cautious?
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Image source: Rolls-Royce plc
With the war in Iran causing huge problems for the global aviation industry, it’s not surprising that the Rolls-Royce Holdings (LSE:RR.) share price has been falling. As recently as March, the group’s shares were changing hands for over £14. Now (5 May), one could be bought for around a fifth less.
Clearly, the rising cost of jet fuel resulting from a lack of supply is taking its toll on airlines. Lufthansa has announced that it will cut 20,000 European short-haul flights over the summer. Others have made similar decisions. Rolls-Royce generates revenue every time one of its engines is used. Fewer flights will likely reduce earnings. But are investors being overly cautious?
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