Wings Magazine

Features Aircraft manufacturers Business Aviation
Bombardier revenues ramp up, even as private plane travel falls

November 2, 2023  By Christopher Reynolds, The Canadian Press

Bombardier Global 7500. (Photo: Bombardier)

MONTREAL — Bombardier Inc. reported a revenue leap of 28 per cent in its latest quarter as the company pledged it would meet its business jet delivery target for the year, even amid supply chain pressures and fewer private jet-setters.

The cash surge rode on a wave of plane deliveries and a swelling aftermarket — the services range from maintenance to parts sales and repair.

Bombardier delivered 31 business jets in the quarter ended Sept. 30, up six aircraft from the same period in 2022 and bringing the year’s total to 82 so far. The tally nonetheless puts a hefty burden on the company as it strives to produce at least 56 more — nearly double what it just churned out — to meet its forecast of at least 138 planes by the end of 2023.

“Quarter after quarter, Bombardier has delivered convincing results and we are well on our way to meet 2023 deliveries target and further increase delivery output in the future,” CEO Eric Martel said.


Martel and chief financial officer Bart Demosky reiterated that supply strains persisted and stressed the need to smooth out kinks in the chain.

“The entire industry has been struggling with an exceptionally difficult supply chain,” Demosky said. Both executives noted Bombardier was not exempt from the snarls.

Meanwhile, use of private planes has plateaued since the pandemic highs of 2021 — though it remains well above 2019 levels — while mass air travel comes roaring back. Globally, business jet activity fell four per cent in the first 10 months of the year compared with the same time span in 2022, according to industry data firm Wingx Advance.

Amid that slower pace, Bombardier’s third-quarter backlog dipped by US$100 million to US$14.7 billion from the year before. But its book-to-bill — the ratio of orders received to deliveries billed, a key indicator of near-term demand — reached 1.1.

On Thursday, the plane maker said it incurred a net loss of US$37 million in the three months ended Sept. 30, down from a US$27-million profit in the same period a year earlier. The loss stems largely from capital expenditure of US$99 million — mostly on Bombardier’s new assembly line for its long-range Global jets at a new manufacturing centre on the edge of Toronto’s Pearson airport. Martel said he expects it to be fully operational before April.

However, revenues from the Montreal-based company, which reports in U.S. dollars, rose to US$1.86 billion in its third quarter from US$1.46 billion the year before.

Its adjusted net income also shot up to US$80 million or 73 cents per share in the quarter, from a loss of US$2 million or 10 cents per share last year.

The adjusted earnings handily beat analyst expectations of 46 cents per share, according to financial markets data firm Refinitiv.

Bombardier said it remains on track to meet its full-year forecast of at least US$7.6 billion and adjusted earnings before interest, taxes, depreciation and amortization of more than US$1.13 billion.

“The company is displaying solid momentum as it reiterates its full-year guidance,” said RBC Capital Markets analyst Walter Spracklin in a note to investors.

“Overall a solid quarter for Bombardier.”

News from © Canadian Press Enterprises Inc., 2021


Stories continue below