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News Release ROLLS - ROYCE HOLDINGS PLC TRADING UPATE Rolls - Royce Holdings plc announced today its trading update to 30 November 2021 . Driving better results and order intake Benefit of cost reductions and market recovery reflected in improving free cash flow Continued gradual recovery in large engine flying hours , a significant award of the B - 52 replacement engine contract in Defence and demand recovering in Power Systems Delivering on our commitments Restructuring programme delivering sustainable savings of more than £ 1.0bn in FY 2021 Net cash inflow achieved in the third quarter 09 December 2021 Free cash outflow in FY 2021 is expected to be better than previous guidance of £ 2.0bn Disposals announced with proceeds totalling around £ 2.0bn Good progress on new markets Successful funding for Rolls - Royce SMR Significant achievements in Rolls - Royce Electrical ROLLS R ROYCE Chief Executive Warren East said : " We are delivering on the elements within our control and are focused on our commitments . We have achieved good results with our fundamental restructuring programme , as we sustainably reduce costs and deliver a leaner and more efficient company and are firmly on course to complete our disposals programme . While external uncertainties clearly remain , we have seen continued gradual recovery in our Civil Aerospace business , a growing order book in Power Systems and have secured a significant contract win in Defence . We are investing in the net zero technologies and solutions that we need across the group to grasp the tremendous commercial opportunity of the global energy transition and drive long - term value . This all underpins our strategy of creating a better quality and more balanced business which can deliver significantly improved returns and cash flow into the future . " Current trading and Full Year 2021 outlook The gradual recovery in international flying combined with market recovery in Power Systems and resilience in Defence are driving improvements in our trading performance . In addition , our restructuring programme , launched in May 2020 , is delivering sustainable cost savings more quickly than initially anticipated , and positions us well for the £ 1.3bn savings target by the end of 2022. By the end of 2021 we expect to have removed more than 8,500 roles , with the pace of restructuring running ahead of our original plan and footprint rationalisation continuing through the second half of the year . This improved trading performance drove a return to positive free cash flow in the third quarter and reduced the outflow expected in the second half . In addition , around £ 300m of original equipment ( OE ) concession outflows , originally expected in 2021 are now expected to fall in 2022 due to delayed delivery of aircraft for which we have already supplied engines . As a result of both the improved trading and the concession timing , our free cash outflow in 2021 is expected to be better than the £ 2bn previously guided . Performance summary In Civil Aerospace , installed engine sales and aftermarket shop visit activity are both lower than the prior year and at the lower end of the guidance given at the half year . Large engine flying hours have continued to recover gradually helped by the reopening of certain key travel corridors , especially the trans - Atlantic routes . The pace of travel recovery remains uneven as countries around the world look to manage the ongoing challenges of the COVID - 19 pandemic . Our large engine flying hours are currently around 50 % of 2019 1