BOMBARDIER FIRST QUARTER RESULTS

Bombardier announced delivery results of the first quarter of 2020. 31 private jets were delivered to the owners, that is 2 aircraft more that in first quarter of 2019. Deliveries by types are the following: Learjet – 3 private jets, Global – 14 private jets, Challenger – 14 private jets.

But despite positive first quarter Bombardier is preparing for a decrease due to COVID-19 situation. Eric Martel, President and Chief Executive Officer, does not provide any estimates for the rest of the year, but is expecting decrease in sales. John Di Bert, Senior Vice President and Chief Financial Officer, notes that decrease in production and deliveries is expected, that will logically lead to lower earnings.

Industry analytics predict average new private jet sales decrease for up to 30%. Situation with sales depends much on cancelation of limitations due to COVID. Most badly were hit sales of light and mid-size jets.

Commenting on the differences of current situation to the one 10 years ago, Martel notes that today there is no massive order cancelation. Bombardier in this situation counts mostly on sales of ultra-long range jets that are currently less impacted.

Bombardier stopped production at some facilities at the end of March and currently is re-loading all processes to open production in accordance with new work safety rules. It is expected that production will return to normal operation during the second quarter.