A significant dispute over maintenance pricing has emerged as a central theme for Rolls-Royce at the Singapore Airshow. Airlines and industry representatives are levelling sharp criticism at the engine manufacturer, accusing it of disproportionately increasing service charges despite ongoing technical issues. Customers allege a strategy of profit maximization, while company executives defend their position by pointing to persistent challenges within global supply chains.
Financial Performance and Upcoming Catalyst
This controversy unfolds against a backdrop of remarkable share price performance. Over a twelve-month period, Rolls-Royce equity has recorded an impressive advance of approximately 96%. The stock currently trades near €14.18, hovering close to its 50-day moving average.
Investor attention is now firmly fixed on February 26, 2026, the date set for the release of the full-year 2025 results. The company has previously guided the market to expect an adjusted operating profit in the range of £3.1 to £3.2 billion, alongside a free cash flow of up to £3.1 billion. The achievement of these targets, coupled with management’s approach to balancing pricing power with customer relations, is anticipated to be a key driver for the stock in the coming weeks.
Airline Industry Criticism and Corporate Rebuttal
The conflict was ignited by comments from Willie Walsh, Director General of the International Air Transport Association (IATA). He criticized engine manufacturers for broadly raising repair costs, arguing that the longevity of modern engines sometimes falls short of expectations and maintenance intervals frequently extend beyond original schedules.
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Rob Watson, President of Rolls-Royce’s Civil Aerospace division, rebutted these allegations on February 3rd. He stated that pricing adjustments are not arbitrary but instead reflect substantially elevated costs stemming from pandemic aftereffects and geopolitical instability. Watson emphasized that the industry continues to grapple with major supply chain disruptions.
Technical Advancements and Strategic Tests
In an effort to address concerns, Rolls-Royce is highlighting concrete improvements in product reliability. The company reports that for the engine powering the Airbus A350-1000, the “time on wing” between overhauls has already been increased by 60%. Further optimizations are scheduled from 2028 onward.
Planned durability tests in 2027 under the extreme operating conditions of the Middle East are a particular focus. This represents a strategically crucial step: Emirates, a globally pivotal customer for wide-body aircraft, has linked potential additional orders for A350 jets directly to demonstrated improvements in engine longevity. The partnership with Airbus was also reaffirmed, with Rolls-Royce indicating support for potential new variants such as the A350-2000.
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