Bombardier’s quarterly loss diminishes as demand for business jets rebounds
Oct. 28 (Reuters) – Canadian business jet maker Bombardier Inc (BBDb.TO) posted a smaller third-quarter loss on Thursday as demand for private jets returned after the pandemic hurt sales in the last year.
The easing of travel restrictions and the attractiveness of private flights have resulted in an increase in business aviation traffic, filling seats for private operators and increasing order books for business aircraft manufacturers like Bombardier and his rivals.
Bombardier generated $ 100 million in free operating cash in the quarter ended September 30, a move closely watched by investors, reversing last year’s negative usage.
Business aircraft revenue jumped 17% to $ 1.4 billion on higher wide-body deliveries from the $ 1.37 billion expected by analysts, according to Refinitiv.
Revenue from business aircraft services also increased due to the increase in fleet flight hours, which exceeded 2019 levels, Bombardier said. The use of business jets in the United States increased 42.5% year-on-year in the first eight months of 2021.
Bombardier recently unveiled a premium variant of its Challenger 350 business jet in an effort to protect its dominant market share in the segment. Read more
The Montreal group posted an adjusted net loss of $ 95 million, or 4 cents per share, in the quarter, compared to a loss of $ 210 million, or 9 cents, a year earlier. Analysts had expected a loss of 5 cents per share, according to Refinitiv. Revenue increased 3% to $ 1.45 billion.
Among its rivals, business jet maker Cessna Textron (TXT.N) on Thursday raised its annual earnings per share and cash flow forecast, while Gulfstream Aerospace of General Dynamics Corp (GD.N) said on Wednesday that the order book for business aircraft had reached six years. high. Read more
“We continued to see signs of a strong recovery in the general aviation market, with a 49% increase in revenue over the third quarter of last year and a $ 721 million increase in backlog of orders, âScott Donnelly, CEO of Textron, said in a statement.
(This story corrects paragraph 1 to show that the period is the third, not the second, quarter of the business)
Reporting by Sanjana Shivdas in Bengaluru and Allison Lampert; Editing by Vinay Dwivedi and Jan Harvey
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