Rolls-Royce engine

The engineering giant Rolls-Royce has reported a £2.9 billion loss for 2018.

The company said the cost of fixing issues with its Trent 1000 engines increased, while it recorded an exceptional item of £186 million due to Airbus scrapping production of the A380 aircraft. It follows a £3.89bn profit for the previous year.

Sales rose nearly £1bn to £15.72bn while underlying profits - which removes the impact of exceptional items - rose 71% to £633m in 2018.

Rolls-Royce chief executive Warren East said: "Underlying financial results are ahead of expectations, with good growth in profit and cash flow. Following the restructuring we announced in June last year we are starting to see the crucial behavioural changes needed to sustain our momentum."

After British Airways and other airlines were forced to ground their planes after experiencing issues with Rolls-Royce's Trent 1000 engine. The engineering firm said it would take years to resolve, and it increased its charge on the matter from £554m to £790m.