Bombardier Reports Higher First-Quarter Cash Burn Amid Sustained Demand for Business Jets

Bombardier reported a higher first-quarter cash burn on Thursday as it builds up inventory to support increased production of business jets amid resilient demand for private flying. Despite industry data showing that private flying has been leveling off after years of growth spurred by the pandemic, business jet makers are reporting sustained demand for their aircraft.

Bombardier delivered 20 aircraft in the first quarter and expects to hand over 150 to 155 jets this year, despite revenue declining 12% to $1.3 billion in the quarter due to the delivery of less pricier aircraft. However, orders for Bombardier’s jets rose 60% in the first quarter, pushing the company’s backlog to $14.9 billion.

Revenue from the company’s services business also rose 13% to $477 million. Quarterly profit fell to $110 million from $302 million, with adjusted profit coming in at 36 cents per share, compared with $1.06 a year earlier. (Reporting By Allison Lampert in Montreal and Abhijith Ganapavaram and Aatreyee Dasgupta in Bengaluru; Editing by Shounak Dasgupta)