GAMA: 1Q Bizjet Shipments Rise, Turboprops Plunge

General aviation airplane and rotorcraft results remained a mixed bag in the first quarter, with billings falling despite an uptick in deliveries, according to data released last month by the General Aviation Manufacturers Association.

Fixed-wing billings in the first quarter were down for the third straight year, sliding 10.9 percent to $3.6 billion. Shipments, however, improved by 12 aircraft to 434. Helicopter billings, meanwhile, were down 12.3 percent to $564 million, even though shipments inched up 4 percent to 183.

Typically a slide in general aviation aircraft billings reflects a drop in business jet deliveries. But business jet deliveries climbed 6.6 percent, rising to 130 in the most recent first quarter from 122 last year. The number of pressurized business turboprops handed over to customers in the quarter, however, plunged 42.8 percent year-over-year, to 35 airplanes from 50, almost entirely the result of fewer King Air deliveries. Piston airplane shipments climbed 6.3 percent, to 203, in the first quarter.

Business Jets

The improvement in business jet deliveries came primarily as Honda Aircraft ramped up deliveries of the HondaJet. The nascent business jet manufacturer handed over 15 in the first quarter, compared with three a year earlier.

Gulfstream also posted a moderate gain in aircraft deliveries, to 30 in the first three months of this year (23 large-cabin, seven midsize) from 28 in the first quarter of last year (20 large-cabin and eight midsize). Thanks to the more favorable mix of models at Gulfstream, revenue at General Dynamics’s aerospace division, which also counts Jet Aviation, soared $293 million year-over-year, to $2.074 billion, while profits climbed $111 million, to $443 million.

Many of the other business jet makers, however, reported either flat or fewer deliveries, driving down billings overall. Since Dassault reports deliveries only at half- and full-year intervals, there are no Falcon shipments in the first-quarter business jet numbers.

First-quarter deliveries at Bombardier Business Aircraft slid by two aircraft from a year ago, to 29, while revenue plunged nearly 30 percent as a result of a more “unfavorable mix,” according to a financial report that the Canadian company released on May 11. The delivery mix showed more entry-level Learjets and fewer higher-end Globals.

Revenue at the division fell by nearly $300 million year-over-year in the quarter, to $1.007 billion, while earnings took an $8 million hit, settling in at $74 million.

Embraer Executive Jets sales plunged by about 44 percent in the first quarter as deliveries of large jets fell by seven and light jets by one, the company reported. In a May 2 announcement, the Brazilian airframer said that the Executive Jets division brought in $226 million in the first quarter, compared with $401.8 million in the same period last year. Embraer’s first-quarter business jet deliveries had fallen to 15 in the most recent quarter from 23 in the same period last year.

At Textron Aviation, deliveries of Citations remained flat. But revenue for the group dropped by $121 million, with King Air deliveries down by 54 percent year-over-year as the strong dollar weighed on international sales. Textron chairman and CEO Scott Donnelly reported that during the first three months Textron Aviation handed over 12 King Airs, down from 26 in that period last year, and 35 Citations, one more than a year ago.

Pilatus saw shipments of the PC-12 turboprop single fall, to 12 this year from 19 in the first quarter last year. But Daher delivered seven aircraft in the first quarter, two more than in 1Q16, an uptick driven by introduction of the TBM 930.

Rotorcraft

In the helicopter market, billings declined by almost $80 million even though turbine-helicopter shipments were up 11.2 percent. Turbine helicopter shipments climbed by 13 aircraft to 129. Piston helicopter shipments, however, were down by 10 percent to 54.

Airbus Helicopters deliveries were buoyed by a more than doubling of H125/125Ms to 34. Leonardo deliveries, however, at 12 were half the year-earlier tally. The absence of any AW139 deliveries in the first quarter accounted for three-quarters of that decline. Robinson deliveries were up by eight aircraft on the strength of the R66.

“The first quarter shows mixed results for our industry, but with several bright spots,” said GAMA president and CEO Pete Bunce. “We expect future growth to be driven by the introduction of new products, which underscores just how important it is for the U.S. Congress to pass certification reform legislation to facilitate the future of aviation manufacturing.”