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Bombardier expects to deliver up to 155 business aircraft in 2019

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Reuters
Last Updated : Dec 06 2018 | 6:45 PM IST

(Reuters) - Bombardier Inc said on Thursday it expects to deliver 150 to 155 business aircraft in 2019, as the Canadian plane maker's Global 7500 jets go into service later this year.

The Global 7500 aircraft, which lists for $73 million each and are sold out through 2021, is expected to boost the company's sales in 2019 and play a key role in Bombardier's five-year turnaround plan to boost revenue and margins by 2020.

Bombardier, which is scheduled to host its investor day later on Thursday, also sees a 10 percent rise in 2019 revenue to about $18 billion, as Global 7500 business jet deliveries accelerate.

The company also expects to deliver two new longer-range variants of its large-cabin business jets, the Global 6500 and 5500, at the end of next year, at a time when demand for corporate planes is recovering.

Bombardier also forecast deliveries of 35 commercial aircraft next year.

The company said in October it had delivered 96 business jets in 2018, meeting more than 70 percent of its forecast for the year.

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The Montreal-based company, which signed a deal to sell its Q400 turboprop program last month, is weighing options for its money-losing regional jet program as the company expands its stronger-performing corporate jet and rail divisions.

Shares have fallen about 28 percent year-to-date on investor jitters over Bombardier's $9 billion debt and concerns over a disappointing free cash flow forecast.

Bombardier said on Thursday it expects to generate free cash flow of $250 million to $500 million in 2019, excluding one-time items.

(Reporting by John Benny in Bengaluru; Editing by Sriraj Kalluvila)

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First Published: Dec 06 2018 | 6:36 PM IST

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