Bombardier bets on higher revenue as vaccine rollout boosts outlook for business travel

Bombardier said Thursday it expects improved revenue this year from business aircraft activities over 2020 as the vaccination rollout in the United States, the world’s largest market for corporate aircraft, boosts traffic. CE Éric Martel told analysts that aircraft pricing would be in line with what was expected or even slightly better. A rebound in US business aviation traffic to pre-pandemic levels is expected to bolster higher-margin aftermarket services as planes fly more. Bombardier reported a 43% increase in quarterly adjusted profit and used less free cash, helped by a recovery in business aviation, as rising COVID-19 vaccinations encourage travel. The company pre-flagged earnings on Monday while disclosing it was seeking bondholders’ consent to amend terms on eight bond issues. The move followed claims by a bondholder that recent sales of non-core assets breached the terms of certain notes. Martel told reporters "we feel pretty good about the preliminary discussions" with the bondholders, adding the results of the vote will come out next Tuesday. Bombardier also disclosed that the UnS has joined an ongoing investigation into its sales of jets to Garuda Indonesia a decade ago.<br/>