Bombardier Bizjet Shipments Down, but Globals Rise

Business jet deliveries at Bombardier Aerospace fell 6 percent in the second quarter on lower Learjet and Challenger volume, partially offset by more Global shipments. During the quarter, the company delivered 36 business jets (three Learjet 70/75s, 12 Challenger 350s, six Challenger 650s and 15 Global 5000/6000s) versus 42 a year ago (five Learjets, 16 Challenger 350s, seven Challenger 650s and 14 Globals).

At the half-year mark, Bombardier has handed over 65 business jets, down from 73 a year ago. The company reaffirmed its full-year guidance of 135 business jet deliveries, which would put overall shipments on par with 2016.

Meanwhile, its business jet division recorded revenues of $1.386 billion in the second quarter, down $87 million from a year ago. However, before-tax earnings in the period climbed by $2 million, to $148 million, thanks to the higher level of Global deliveries.

As for business jet order intake, Bombardier president and CEO Alain Bellemare told financial analysts on Friday that “the level of activity is pretty good.” He added, “It’s a different market than it used to be…it’s a market that has been soft for many years now, and it has not been a typical aerospace cycle for business aircraft. But we are starting to see stabilization.” Backlog at Bombardier Business Aircraft stood at $14.7 billion as of June 30, about $700 million lower than at the end of last year.