Bombardier Inc., the Canadian-based aircraft manufacturer, reported a smaller-than-expected third-quarter loss Thursday, after demand for private aviation returned following the pandemic-fueled drop in sales last year.
A swell in business aviation traffic has been due in part to eased travel restrictions, filling private operator seats and expanding order backlogs for OEMs such as Bombardier and its competitors.
Revenue for Bomardier’s business-jet segment rose 17 percent year-over-year to $1.4 billion on higher deliveries of large aircraft.
The increase in revenue is also the result of increased fleet flight hours, which have exceeded 2019 levels, according to Bombardier. As compared to 2020, business-jet utilization in the U.S. has risen by almost 43 percent.
“The Bombardier team once again delivered a solid quarter, a confirmation that this year is shaping up to be significantly better than the last,” said Éric Martel, president and CEO of Bombardier, in a statement.
“Our unit book-to-bill ratio remains very healthy, contributing to a significant increase to our backlog. This momentum has also translated to a solid increase in profitability, with adjusted EBITDA margin approaching 10 percent this quarter.”
Last month, Bombardier unveiled its upscale version of its Challenger 350 business jet, the Challenger 3500, hoping to protect its dominant market share in the segment and to take advantage of the higher demand for private flying amid the pandemic.
- READ MORE: Bombardier Unveils the Challenger 3500 | Challenger 3500 Already a Big Hit For Bombardier
The company reported an adjusted net loss of $95 million—about 4 cents per share. Last year, the company lost $210 million—about 9 cents per share.
Bombardier’s revenue increased 3 percent to $1.45 billion.
