TIN news: Bombardier reported a consolidated net loss of $31 million for the first quarter of 2017, narrowed from a consolidated $138 million net loss in 1Q 2016.
Consolidated first-quarter revenue was $3.6 billion, down 8.6% from $3.9 billion a year ago. Bombardier said the company’s revenue performance was “in line with expectations” and demonstrated momentum in executing the company’s turnaround plan.
Bombardier’s commercial aircraft sector posted $540 million in first-quarter revenue, a 12.3% decline from the sector’s $616 million revenue in 1Q 2016.
“Our continued margin expansion and improving cash performance demonstrate both the early benefits of our [transformation plan] and the long-term potential of our company,” Bombardier president and CEO Alain Bellemare said.
The Canadian federal government is providing Bombardier with C$372.5 million ($272 million) in repayable support over four years for both the CSeries commercial aircraft and Global 7000 business aircraft programs. Additionally, the Quebec provincial government has invested $1 billion for a 49% stake in the CSeries program.
Bombardier booked orders for 10 commercial aircraft in the first quarter—all CRJ900s—from Irish regional carrier CityJet, valued at $467 million. Upon delivery, the aircraft will operate under wet lease in the Scandinavian Airlines (SAS) network. Fifteen commercial aircraft were delivered during the quarter, including seven CRJ900s (four to UK-based lessor Trident Jet, which will wet lease the aircraft to City Jet, and three to regional carrier China Express Airlines), one CRJ1000 (to Spanish regional carrier Air Nostrum), one CS300 (to airBaltic) and six Q400 turboprops (two each to Canadian regional carriers Porter Airlines and WestJet Encore, and one each to Okinawa-based Ryukyu Air Commuter and Dublin-based lessor Elix Aviation Capital).
Bombardier said it significantly ramped-up its CSeries aircraft production during the quarter top prepare for an acceleration of deliveries in the second half of 2017.