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May 5 (Reuters) – Bombardier Inc BBDb.TO on Thursday reported a smaller quarterly adjusted loss, as the business jet maker generated more margins from sales of its flagship plane to wealthy travelers who are increasingly flying private due to the pandemic.
Corporate jet makers are reporting swelling orders, with more affluent passengers taking charter planes for safety reasons as well as fewer options with airlines cutting routes due to staff shortage and higher fuel costs.
Bombardier said its backlog rose by $1.3 billion to $13.5 billion since the beginning of 2022, as affluent passengers continued flying private despite a rebound in airline traffic.
The company said its adjusted earnings before interest, taxes, depreciation and amortization rose 36% in the first quarter on higher profits from sales of its best-selling Global 7500 jet and cost cutting measures.
The company’s first quarter book-to-bill, which measures orders to deliveries, was 2.5 on strong sales activity.
The Montréal-based company’s free cash flow from continuing operations, a metric closely watched by investors, was $173 million, compared with an outflow of $405 million a year earlier.
The company reported an adjusted loss of 3 cents per share in the reported quarter, compared with a loss of 7 cents per share, a year earlier.
Revenue fell 7% to $1.2 billion, as the timing of deliveries slipped to until later this year.
More deliveries are timed for later in the year to meet full-year guidance of more than 120 deliveries.
(Reporting By Allison Lampert in Montreal; additional reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shinjini Ganguli)
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