Rolls-Royce to sell shares as virus cuts travel

Rolls-Royce Holdings plans to raise 2 billion pounds (USD 2.6 billion) by selling shares to existing investors after airlines around the world cut flights in response to the COVID-19 pandemic, slashing revenue for the jet-engine maker.

Rolls-Royce Holdings plans to raise 2 billion pounds (USD 2.6 billion) by selling shares to existing investors after airlines around the world cut flights in response to the COVID-19 pandemic, slashing revenue for the jet-engine maker. The London-based company said Thursday it also plans to raise at least 1 billion pounds by selling bonds, and it may increase borrowing by up to 2 billion pounds.

The financing package comes after the company earlier this year announced plans to cut at least 9,000 jobs and reduce costs by up to 1.3 billion pounds by the end of 2022. About 4,800 people had left the company by the end of August. Chief Executive Warren East says, "the capital raise announced today improves our resilience to navigate the current uncertain operating environment." The company, which sells and maintains jet engines, has contracts with more than 400 airlines and leasing customers, as well as armed forces and navies around the world.(AP) RUP RUP