(Bloomberg) -- Rolls-Royce Holdings Plc just extended its status as Europe’s best performing stock this year.
The shares rose as much as 7.5% on Tuesday after the UK maker of engines set ambitious targets for higher cash flow and return on capital. The stock has jumped nearly 180% this year, on track for the best year since its 1987 public listing, as a recovery in air travel propels demand for its engines.
Read: Rolls-Royce Plans Higher Cash Flow as CEO Pushes Efficiency
Significant headwinds facing the London-based company have turned into tailwinds, as a post-pandemic recovery in air travel has proved stronger than initially expected, with demand for long-haul jets propping up demand for Rolls-Royce’s engines.
The surge dwarfs the continent’s other key stock-market event of the year: Novo Nordisk’s climb to become Europe’s most valuable firm in 2023 on the back of its blockbuster weight-loss and diabetes drugs Wegovy and Ozempic. The stock has gained 48% year to date.