Rolls-Royce faces A350 cost concerns: Can shares hold GBX 1,300?

Rolls-Royce faces A350 cost concerns: Can shares hold GBX 1,300?
UK macro risks keep Rolls-Royce volatility elevated

​Rolls-Royce remains under pressure as concerns over A350 maintenance costs add to a weaker market backdrop. The next test is whether GBX 1,310 can hold before the correction extends into the June price gap.

RR price prediction
24H -0.6%
GBX 1,315.3
48H -1%
GBX 1,310.1
7D 1.31%
GBX 1,340.7
1M -7.13%
GBX 1,229
3M -18.15%
GBX 1,083.07
6M 6.87%
GBX 1,414.15
12M 15.74%
GBX 1,531.54
Current price: GBX 1,323.3 -8.3028 0.62%
Closed 10/20
Daily range 1292.60 Arrow from to Icon 1338.00
Weekly range 1292.60 Arrow from to Icon 1377.40
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Another source of uncertainty for Rolls-Royce shares came from Bloomberg reports that Air India is looking to reduce maintenance costs for its A350 fleet, which is powered by Rolls-Royce Trent XWB engines. According to people familiar with the matter, operating and maintenance expenses have come in above the airline’s initial expectations.

There is no indication at this stage that existing contracts are being renegotiated, but the situation highlights how sensitive airline customers remain to engine servicing costs.

Losing GBX 1,310 could expose the June price gap

Rolls-Royce shares have broken below the 200-day SMA and are now moving towards the previously identified GBX 1,310 target.

If that level fails to hold, the risk of a deeper correction would increase considerably. The next downside area would then be GBX 1,280–1,250, where the unfilled price gap from 12 June 2026 is located.

For the short-term technical picture to improve, the shares need to recover above the 200-day SMA and then clear resistance at GBX 1,350. A sustained move above those levels would create room for a recovery towards GBX 1,400.

UK labour market and inflation data raise volatility risks

Volatility across UK equities may remain elevated as investors increasingly rotate towards government bonds amid weaker risk appetite.

A busy macroeconomic calendar adds another layer of uncertainty. According to the Office for National Statistics, the UK will publish labour-market data, including unemployment figures, on Tuesday, 20 October, followed by September CPI on Wednesday, 21 October.

Both releases could shift expectations for the Bank of England’s next policy moves and trigger fresh swings in gilt yields, adding another source of volatility for Rolls-Royce shares.

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