Bombardier Inc. reported a third-quarter loss of US$377 million compared with a profit of US$192 million a year ago.
“The Bombardier team once again delivered a solid quarter, a confirmation that this year is shaping up to be significantly better than the last,” said Éric Martel, President, and Chief Executive Officer, Bombardier in a press release. “Our unit book-to-bill ratio remains very healthy, contributing to a significant increase to our backlog. This momentum has also translated to a solid increase in profitability, with adjusted EBITDA margin approaching 10% this quarter.”
“We are delivering consistently on what we set out to do, especially when it comes to deleveraging the balance sheet. Thanks to the hard work of our outstanding team, we cleared the debt maturity runway on plan,” added Martel. “As a fantastic finale to the quarter and at a great moment in time for our industry, we launched our new Challenger 3500 jet last month. The extremely positive reception and strong first orders for the new aircraft are clear evidence that we were able to bring significant value to customers through measured and disciplined investments.”
Business jet revenues of $1.4 billion are up 17% year-over-year, propelled mainly by an improved delivery mix, with higher deliveries of large aircraft. The company has also seen an increase of revenues by $76 million from business aircraft services. This is mainly due to increased fleet flight hours having now surpassed 2019 levels, a clear signal that the industry is on a strong recovery path from the global shock caused by the COVID-19 pandemic. Confidence levels within the industry are at a new all-time high, indicative of the rising vaccination levels and eased travel restrictions. In the U.S., business jet utilization increased by 42.5%, year-over-year for the first eight months of the year. In Europe, business jet utilization increased by 27.1% year-over-year in the first nine months of the year.
Bombardier reported an adjusted EBITDA of $142 million, representing a year-over-year improvement of $58 million or 69%. The company attributes this to an improved aircraft mix, continued progress on Global 7500 aircraft learning curve, and cost structure improvements. Reported EBIT from continuing operations for the quarter was $48 million.