Bombardier, a Canadian planemaker, is facing increased competition from Gulfstream, a division of General Dynamics, after the latter had its G700 luxury jet certified by the U.S. Federal Aviation Administration. Despite private flying levels off after growth during the pandemic, business jet makers are still experiencing sustained demand for their aircraft. Bombardier delivered 20 aircraft in the first quarter and expects to deliver 150 to 155 jets this year. Revenue declined by 12% to $1.3 billion due to delivering less expensive aircraft, but the company’s backlog increased to $14.9 billion with a 60% rise in orders for jets during the quarter.
Bombardier’s services business also saw an increase in revenue by 13% to $477 million. However, quarterly profit decreased to $110 million from $302 million. Adjusted profit per share was 36 cents, down from $1.06 the previous year. Despite these challenges, Bombardier is working to meet demand for business jets and strengthen its position in the market.
In addition to its focus on meeting demand for business jets, Bombardier has also been working on increasing inventory levels to support production due to strong demand for private flying. In the quarter through March, cash burn was $387 million, up from $247 million the previous year.
Despite private flying leveling off after growth during the pandemic, business jet makers are still experiencing sustained demand for their aircraft. This trend is expected to continue as more people turn towards private flying as a way of avoiding crowded commercial flights and maintaining social distancing measures.
Bombardier has been able to capitalize on this trend by delivering over 20 aircraft in the first quarter and expecting to deliver between 150 and 155 jets this year despite declining revenue due to delivering less expensive aircraft.
The company has also been working hard on increasing its inventory levels and expanding its product line offerings in order to meet growing demand for private flying.
Overall, despite facing competition from Gulfstream and declining profits due to lower revenue from selling less expensive aircraft, Bombardier remains committed to meeting demand for business jets and strengthening its position in the market through innovation and expansion efforts.
