- Rolls-Royce reported heavy operating losses for the first half of 2020 from the impact of the Covid-19 pandemic. It has also announced job cuts across its civil aviation business as the sector was hit dramatically by the grounding of flights around the world. The aerospace and engineering company reported a pre-tax loss of £5.4bn, including a £2.6bn non-cash loss from the revaluation of its foreign currency hedge book. The underlying pre-tax loss was £3.2bn. A reported operating loss of £1.8bn included £1.1bn from impairments and write-offs, and £366m in restructuring charges. This was partly offset by a £498m exceptional credit on the Trent 1000 programme. Underlying revenue of £5.6bn was down 24% compared to the first half of 2019. Rolls-Royce has taken measures to increase its liquidity position, but has also been forced to cut 4,000 jobs worldwide. It has already delivered £350m of savings towards a £1bn target. The company said the 'timing and shape' of its industry's recovery from the pandemic 'remains uncertain'.

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