In a significant boost for its civil aerospace division, Rolls-Royce has secured a substantial order from U.S. carrier Delta Air Lines. This deal, announced on January 28, arrives during a period of market volatility and serves as a strong indicator of the ongoing recovery in global air travel. It also reinforces the British engineering group’s standing in the competitive wide-body aircraft engine market.
A Closer Look at the Agreement
The cornerstone of the agreement is the supply of 62 engines. Delta’s order comprises 30 Trent XWB-84 engines to power Airbus A350-900 aircraft and 32 Trent 7000 engines for its fleet of A330neo jets.
For investors, a critical component of the deal is the accompanying “TotalCare” service agreement. This long-term maintenance model is a major cash flow generator for Rolls-Royce. Under its terms, the company assumes the maintenance risk for the engines and receives payments linked directly to the number of hours each engine flies. This creates a recurring revenue stream that will grow as Delta’s new fleet becomes operational.
Technical Milestones and Durability Enhancements
Beyond this commercial success, Rolls-Royce is making progress on important technical fronts. Reports indicate that production has commenced on “Phase 2” upgrade components for the Trent 1000 engine, which is used on Boeing’s 787 Dreamliner aircraft.
Should investors sell immediately? Or is it worth buying Rolls-Royce?
The upgrades, which include a redesigned turbine shroud, are projected to potentially triple the engine’s “time-on-wing”—the duration it can remain on the aircraft before requiring shop visits. This development marks a pivotal step in moving past previous durability concerns and is expected to further solidify airline confidence in the product.
Shareholder Returns and Upcoming Financial Calendar
Alongside its operational achievements, Rolls-Royce’s management continues to prioritize capital returns to shareholders. Following the completion of a billion-pound buyback program in November, an interim share repurchase initiative of £200 million is now underway. This program is scheduled to conclude on February 24, 2026.
Despite these positive developments, the company’s shares have faced recent pressure, declining approximately 12% since the start of the year to trade at €14.06. Market attention is now turning to the next key date on the corporate calendar: the full-year 2025 results presentation on February 26, 2026. This event is also anticipated to provide clarity on the future strategy for shareholder returns, including any potential continuation of share buybacks.
Ad
Rolls-Royce Stock: Buy or Sell?! New Rolls-Royce Analysis from February 1 delivers the answer:
The latest Rolls-Royce figures speak for themselves: Urgent action needed for Rolls-Royce investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 1.
Rolls-Royce: Buy or sell? Read more here...
