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Canadian airplane manufacturer, Bombardier’s operating business lost $251 million in the first quarter of the year.
Bombardier, however, ended the first quarter with cash and cash equivalents worth $3.1 billion, up from $1.8 billion at the end of last year.
Chief Executive, Bombardier, Eric Martel said the aerospace industry has turned a corner insisting an upswing is under way.
The company delivered 26 business aircraft during the three months, including eight of its flagship Global 7500s, matching overall output for the first quarter of 2020.
Excluding interest, taxes, depreciation and amortisation, however, Bombardier earned a $123 million profit, up 43 per cent year on year.
In the year, Bombardier anticipates delivering 110 to 120 business jets, generating more than $5.6 billion in revenue and achieving an adjusted profit before interest and taxes of more than $100 million.
By comparison, Bombardier delivered 114 business jets in 2020 and 142 the previous year.
Revenues from business aircraft activities in 2021 are expected to be better than 2020 based on a gradual economic recovery scenario.
Bombardier’s targets include expanding its aftermarket business to account for 27 per cent of revenue by 2025, reducing Global 7500 unit costs 20 per cent by the 100th delivery, and removing $400 million in costs from its business yearly by 2023. Bombardier delivered its 50th Global 7500 in March.
“We are in a very different and better place than we were a year ago. Most market trends and indications are pointing to a gradual economic reopening and recovery. the worst of this pandemic may be behind us,” Martel said in an interview.
Despite signs of recovery, Bombardier has not signalled an intention to boost Global 7500 output.
Martel said the company would remain discipline with production rates until further industry stabilisation is seen.
The company also anticipates growth of its aircraft services business, noting it is expanding that operation in places including Miami, London, Singapore and Melbourne, Australia,.
“We remain confident in our ability to deliver on both our full-year financial guidance and longer-term objectives,” Martel said.
According to the company, despite the short-term global shock caused by the COVID-19 pandemic, the business aviation industry is expected to grow in the long term, driven by continued wealth creation and introduction of new aircraft models and technologies.