Bombardier reported a higher first-quarter cash burn on Thursday as the Canadian planemaker builds up inventory to support increased production of business jets amid resilient demand for private flying. The Montreal-based company is facing pressure from rival General Dynamics’ Gulfstream, which had its flagship G700 luxury jet certified last month by the U.S. Federal Aviation Administration.
Industry data shows that private flying has been leveling off after years of growth spurred by the pandemic, but business jet makers are reporting sustained demand for their aircraft. Bombardier reported 20 aircraft deliveries in the first quarter and expects to handover 150 to 155 jets this year. Revenue for the quarter fell 12% to $1.3 billion due to the delivery of less pricier aircraft, but orders for Bombardier’s jets rose 60%, pushing the company’s backlog to $14.9 billion.
Revenue from Bombardier’s services business rose 13% to $477 million, but quarterly profit fell to $110 million from $302 million, with adjusted profit per share coming in at 36 cents compared with $1.06 a year earlier (Reporting By Allison Lampert in Montreal and Abhijith Ganapavaram and Aatreyee Dasgupta in Bengaluru; Editing by Shounak Dasgupta).
