Bombardier reported a higher first-quarter cash burn on Thursday as the Canadian planemaker builds up inventory to support increased production of business jets amid resilient demand for private flying. Cash burn for the quarter through March was $387 million, compared with $247 million a year earlier. The Montreal-based company is facing pressure from rival General Dynamics’ Gulfstream, which had its flagship G700 luxury jet certified last month by the U.S. Federal Aviation Administration.
Despite leveling off after years of growth spurred by the pandemic, business jet makers are reporting sustained demand for their aircraft. Revenue declined 12% to $1.3 billion in the quarter due to the delivery of less pricier aircraft, but orders for Bombardier’s jets rose 60% in the first quarter, pushing the company’s backlog to $14.9 billion.
Revenue from Bombardier’s services business rose 13% to $477 million, and orders for its jets jumped 60%, while revenue declined 12%. Quarterly profit fell to $110 million from $302 million. On a per share basis, adjusted profit was 36 cents, compared with $1.06 a year earlier. The Montreal-based company is working hard to build up inventory in preparation for increased production of business jets as demand remains strong despite some leveling off after years of growth spurred by the pandemic.