Continued demand for private and business aircraft buoyed Bombardier’s third-quarter revenue, which reached $1.46 billion as the company said it remains on track to deliver more than 120 aircraft this year.
It was a busy quarter for the company as its new super-midsize Bombardier Challenger 3500 business jet entered into service and was delivered to a long-time customer.
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Additionally, during the 2022 National Business Aviation Association Business Aviation Convention & Exhibition (NBAA-BACE) in Orlando, Florida, Bombardier announced a three-zone cabin configuration for its Global 7500 and Global 8000 aircraft. The Global 8000 is expected to enter the market in 2025 and is currently in flight testing. It is expected to have an 8,000-nm range and a top speed of Mach 0.94.
During the quarter, the OEM delivered 25 medium and large jets, just two fewer than it did during the same period last year. For the nine-month period that ended September 30, Bombardier said it delivered 74 business jets, which is 82 fewer than it delivered last year.
The backlog grew from $12 billion in December 2021 to $15 billion as of September this year, demonstrating a strong demand from travelers seeking more private travel solutions, according to the company.
“With every passing month of airport and flight schedule disruption, business [aviation] travel becomes a more appealing option,” Éric Martel, president and CEO of Bombardier, told investors in August.
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The company reported an improved balance sheet during the quarter, shrinking its adjusted losses to $2 million from $95 million a year ago. However, the OEM said supply chain challenges for parts and rising interest rates, inflation, and other things outside of its control affected its margins. However, it said its services revenue grew by $62 million compared to last year due to increased service center maintenance activity.
Earlier this week, the company opened its new service center at the Miami-Opa Locka Executive Airport (KOPF) in Miami-Dade County. Bombardier said in a statement that the 300,000-square-foot facility would quadruple its maintenance footprint in Florida and help transfer service center operations from Fort Lauderdale Opa Locka. Moreover, it will add close to 300 aerospace jobs in the community, including more than 225 highly skilled technicians. It is also capable of holding 18 Global 7500 aircraft.
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Looking ahead, the company said it would continue to monitor the predicted economic slowdown that has the potential to affect its business. However, it said it remains positioned for growth as it expects the business aviation sector to continue growing over the long term, driven by wealth creation and the new aircraft models coming to the market.
“We are well equipped to face any market condition ahead of us,” Martel said during the call.