Rolls-Royce posts strong Q1 with engine flying hours recovering to pre-conflict levels

Rolls-Royce Holdings reported an upbeat first quarter, with engine flying hours reaching the lower end of its full-year guidance. Deutsche Bank maintained a Buy rating and a target price of 1,325p, noting solid performance despite Middle East uncertainties. The recovery is driven by Middle Eastern airlines returning to pre-conflict flying hours and strong growth supported by capacity reallocation and improved operations. Management confirmed its full-year 2026 guidance, signaling confidence in continued recovery.