ROLLS-ROYCE enjoyed a boost to its shares yesterday after signing a £3.2bn contract with British Airways for its Trent 900 and Trent 1000 engines.
Confirmation of the deal, which was first mooted in 2007, will allow Rolls-Royce to book the orders on its balance sheet.
Rolls-Royce chief executive Sir John Rose said: “We are pleased that British Airways continues to put its trust in our world-class Trent engine technology and service provision.”
Rolls-Royce shares gained more than two per cent following the announcement, and closed up 0.76 per cent at 659p, outperforming a sluggish FTSE 100.
The stock took a battering in November when a Qantas flight was forced into an emergency landing after a Rolls-Royce Trent 900 engine failed.
“Today it takes on perhaps disproportionate significance because having British Airways sign up for Rolls-Royce Trent 900 engines for its A380s after what happened with Qantas is really rather reassuring,” said Sandy Morris, an analyst at RBS.
•Airlines are staying away from further hedges on jet fuel purchases, betting that a recent surge in oil prices to two-year highs will slow, according to figures from Reuters.