Sustained demand for private jets and the maintenance they require helped boost Bombardier’s profits and revenues in the third quarter.
Posted at 7:53 a.m.
Updated at 3:56 p.m.
The Quebec aeronautics specialist said Thursday that its profits amounted to 117 million US dollars, compared to a loss of 37 million US dollars a year earlier, while its revenues increased by 12%, boosted by the growth of its service activities.
As Bombardier works to boost its aftermarket segment, the company saw revenue on the maintenance and repair side increase 28% to US$528 million, representing about a quarter of revenue. .
The company has more than doubled the size of this segment since launching a growth strategy about five years ago, and plans to expand capacity further.
“It’s growing so quickly around the world that we have options in mind right now in each of the regions,” CEO Eric Martel said during a conference call to discuss the company’s latest results.
Bombardier’s expansion into services has allowed it to grow from around 33% market share to almost 50%, he noted.
The company’s growing number of aircraft in operation, around 100 per year, also creates potential for increased business on the services side.
“The trend going forward is that this business is going to continue to grow significantly for us,” he said.
Bombardier does not fear a slowdown in demand
The potential on the services side is growing as Bombardier was able to maintain the same level of order book as a year earlier, with stable demand in most regions outside Europe, Martel said.
Although some feared a slowdown after the pandemic-fueled surge in demand, he said that’s not what he’s seeing.
“Many people feared that this new normal would not last. But I tell you after two years post-COVID, it persists,” he stressed.
The rise in demand for private jets also led to a 46% increase in greenhouse gas emissions between 2019 and 2023, according to a study released Thursday.
Private aviation emissions produced at least 15.6 million tons of carbon dioxide, according to the study published in Communications Earth & Environmentand numerous leisure trips are part of this growth.
Bombardier said it would have to examine the data more closely before reacting. The company highlighted that it was reducing emissions from its own use of jet aircraft by participating in a sustainable aviation fuel credit scheme.
Mr. Martel affirmed that the situation remained positive in the American market, where 68.7% of planes are registered according to the study on GHG emissions.
“The whole election, you know, created a little bit of uncertainty. I think that the fact of having had clear results yesterday [mercredi] is probably a positive for us to finish the quarter and move into the next year,” he said.
For the third quarter, Bombardier saw its revenues increase from US$1.86 billion last year to US$2.07 billion this year.
The aircraft manufacturer, which reports its results in US dollars, reported a profit of 1.09 US dollars per share, compared to a loss of 47 US cents per share in the third quarter of 2023.
On an adjusted basis, Bombardier said it earned 74 US cents per share in its most recent quarter, compared to adjusted earnings of 73 US cents per share in the same quarter last year.
Analysts on average expected adjusted earnings of 73 US cents per share, according to LSEG Data & Analytics.
