Bombardier delivers fewer biz jets, announces C Series order

Bombardier delivered 31 business jets in the third quarter of 2017, five fewer than the same quarter last year.

That’s according to the Montreal-based company’s earnings report on Thursday, which also showed three fewer deliveries of its Wichita-built Learjet business jets.

Revenue in the quarter ended Sept. 30 was up 3 percent from last year’s quarter to $3.8 billion, the company said. However it saw a net loss of $117 million, a 24 percent increase from its $94 million net loss in the third quarter of 2016. The loss primarily reflects spending on its new C Series and Global 7000 jet programs.

Despite the fewer business jet deliveries, Bombardier CEO Alain Bellemare said on a conference call Thursday that they are tracking as expected and the business aircraft division delivered solid performance in the quarter, adding that the overall business jet market is stabilizing with rising use and falling numbers of used business jets for sale.

He said he expects business aircraft to finish 2017 with 135 deliveries and an 8 percent profit margin.

Bombardier also announced Thursday a letter of intent for an order of up to 61 C Series aircraft from an unidentified European customer. The order, for 31 firm and 30 optional C Series jetliners, is expected to convert to a purchase agreement before the end of 2017, Bombardier said. The firm order would be valued at $2.4 billion at C Series list prices.

Bellemare said the order and the C Series manufacturing partnership Bombardier and Airbus announced earlier in October set a tone of strengthening demand for its new narrowbody passenger jet.

“This new order confirms the increasing confidence that airlines and leasing companies have in the C Series, and we expect to see accelerating sales momentum in the months ahead,” Bellemare said.

This story was originally published November 2, 2017 at 9:41 AM with the headline "Bombardier delivers fewer biz jets, announces C Series order."