The engineering giant’s announcement comes after a significant fall in air travel as countries across the world imposed nationwide lockdowns and travel restrictions in a bid to battle the spread of the virus.

The company had previously warned that it could take several years before the airline industry fully recovers from the pandemic.

It has also previously announced that it would cut a fifth of its workforce, potentially saving £700 million ($925 million). The majority of the cuts would fall on its U.K. operations, affecting the civil aerospace division.

Commenting on the record losses, Chief Executive Warren East said: “We ended 2019 with good operational and financial momentum. However, the COVID-19 pandemic has significantly affected our 2020 performance, with an unprecedented impact on the civil aviation sector with flights grounded across the world.

“We have responded rapidly to increase our liquidity, with £6.1bn ($8 billion) at the end of [the first half of 2020] and a further £2.0bn ($2.6 billion) term loan agreed in H2 [second half of 2020], to help weather the continued uncertainty around the timing and shape of the recovery in the civil aviation sector. We have made significant progress with our restructuring, which includes the largest reorganization of our Civil Aerospace business in our history.

“This restructuring has caused us to take difficult decisions resulting in an unfortunate but necessary reduction in roles. These actions will significantly reduce our cost base, which combined with recovery in Power Systems and continued resilience in Defense, will help us to deliver significantly improved returns as the world recovers from the pandemic.”

On Wednesday, the company said that it planned to close factories in Nottinghamshire and Lancashire as part of wider plans to cut 3,000 jobs in the U.K.

It also said that by August 27, more than 4,000 people had left the business, with at least 5,000 in total expected to leave by the end of the year from across the U.K., Germany, Singapore and other global locations.

In a statement, Rolls Royce said: “This includes more than 2,500 voluntary severance and early retirement agreements in the UK, substantially reducing the need for compulsory redundancies.”

It also warned that uncertainty remained due to COVID-19, “particularly around the easing of travel restrictions and the pace of economic recovery.”

It expects a gradual recovery in civil aviation activity towards the end of 2020.