Rolls-Royce, a prominent British engineering company, has reaffirmed its forecast for annual profit growth of at least 30% for this year, buoyed by increased flight activity among its airline

customers and sustained demand for power solutions in data systems and defense equipment.

This robust performance has helped mitigate issues in the aerospace supply chain, which have led to part delays. The company previously cautioned in August that these supply chain disruptions would result in an additional cost of 150 million pounds ($194 million) to 200 million pounds for 2023.

“Our solid performance year-to-date further reinforces our confidence in meeting our 2024 targets, despite ongoing challenges in the supply chain,” said Chief Executive Tufan Erginbilgic on Thursday.

Rolls-Royce, which exclusively supplies engines for Airbus’s widebody aircraft and is a key supplier for Boeing’s 787, has projected underlying operating profit between 2.1 billion pounds and 2.3 billion pounds for the current year.

In August, the company improved its financial outlook and reinstated its dividend, which had been suspended during the COVID-19 pandemic when the sharp decline in air travel posed significant challenges to its business continuity.

Since Erginbilgic assumed the role of CEO in January 2023, Rolls-Royce’s shares have climbed 487%, underscoring the positive market response to his leadership. Photo by Stephen Sweeney, Wikimedia commons.