What's Happening
Rolls-Royce has increased its profit forecast, expecting over £4 billion this year, and announced plans for a share buyback of up to $12 billion. The aerospace giant's improved outlook is driven by strong demand for its power systems and engines.
Market Impact
Shares of Rolls-Royce surged by 6% following the announcement, reflecting investor confidence in the company's strategic direction and financial health.
Broader Implications
This move signals a rebound in the aerospace sector, as companies capitalize on post-pandemic recovery and increased travel demand.