The British engineering group Rolls-Royce has announced a significant new contract with a key Asian airline while simultaneously detailing an aggressive plan to regain market share in a competitive aircraft segment. These developments highlight the company’s dual focus on securing new business and enhancing its technological offerings.
Strategic Moves in Civil Aerospace
At the Singapore Airshow, Rob Watson, who leads Rolls-Royce’s Civil Aerospace division, outlined a clear offensive strategy targeting the Boeing 787 market. This segment is currently dominated by the GEnx-1B engine from GE Aerospace. Rolls-Royce aims to counter this with its upgraded Trent 1000 XE powerplant, which entered production in the second half of 2025 and incorporates Phase 2 improvements. A newly redesigned high-pressure turbine blade for this engine received certification from the U.S. Federal Aviation Administration in December 2025. Watson identified carriers such as Malaysia Airlines as potential customers for this campaign.
Expansion of a Key Fleet Partnership
Separately, on February 4, 2026, the company confirmed that Taiwan’s China Airlines has signed TotalCare service agreements for 36 Trent XWB engines. The order comprises 30 Trent XWB-97 units and six Trent XWB-84 units, which will power a total of 18 Airbus A350 aircraft.
This agreement expands an existing relationship, as China Airlines already operates 15 A350s with Rolls-Royce engines. The new order will grow that fleet to 33 widebody jets. The Trent XWB-97 engine model has now accumulated over four million flight hours across seven years of service. The company states that ongoing enhancements have already increased the time-on-wing between maintenance events by 60%. A third phase of improvements, scheduled for 2028, is projected to double the engine’s lifespan under demanding operating conditions.
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Addressing Industry Criticism on Pricing
During the airshow, Watson also responded to criticism from the International Air Transport Association (IATA). IATA’s Director General, Willie Walsh, had accused engine manufacturers of broadly raising repair prices despite durability issues with some components.
In comments to Reuters, Watson defended the company’s pricing approach, stating, “Pricing does to some extent reflect cost. We are passing on increased costs that have come from the well-known supply chain issues and geopolitical instability.”
Share Buyback and Upcoming Financials
On the corporate finance front, Rolls-Royce is currently executing an interim share repurchase program worth £200 million. This initiative commenced on January 2, 2026, and is scheduled to conclude on February 24. It follows a completed £1 billion buyback program that ran through November 2025.
The market’s attention now turns to the full-year 2025 results, which are due for release on February 26, 2026. According to analyst consensus data from Simply Wall St, revenue is anticipated to reach approximately £19.5 billion, up from £17.8 billion the previous year. Underlying earnings before interest and tax (EBIT) are forecast to be around £3.26 billion. The report will indicate whether growth momentum in the civil aerospace and power systems divisions has been sustained.
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