ROLLS-ROYCE has warned of permanent job cuts as it expects numbers of engines made this year to be at almost half the planned amount as airlines remain grounded.

The company said it is working with trade union and employee representatives and has already placed 4,000 UK staff on furlough.

It said flying hours for its engines decreased by 90 per cent in April as airlines around the world temporarily grounded large proportions of their fleets.

Rolls-Royce said it expects the severity of the pandemic to “lead to a smaller commercial aerospace market which may take several years to recover”.

READ MORE: 20,000 Rolls-Royce workers take 10% pay 'delay'

It expects to deliver 250 engines in 2020, down from its previous guidance of 450 after the “unprecedented reduction” in air traffic.

It said: “We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month and will consult with affected employees in due course.”

Rolls-Royce said its power systems division has also experienced weaker trading. Shares in Rolls-Royce, which has plants in Glasgow, Bristol, Derby and Barnoldswick, dipped 2.2% to 287.4p.