(Reuters) – Business jet maker Bombardier Inc on Thursday reported a smaller second-quarter loss, helped by steady demand from wealthy travelers and lower interest expenses.
Bombardier now expects 2022 free cash flow of more than $515 million, compared with its earlier forecast of over $50 million, in part due to an increase in working capital.
Business jet makers are reporting swelling order backlogs, and strong demand for aftermarket services, as private flying in the United States remains above pre-pandemic levels in 2019.
Bombardier’s second-quarter free cash flow from continuing operations, a metric closely watched by investors, was $341 million, compared with $91 million, a year earlier.
The Montreal-based company’s adjusted loss per share narrowed to 48 cents per share, from a loss of $1.49 per share a year earlier.
Revenue rose to $1.56 billion from $1.52 billion for the quarter ending June 30.
The company said it paid off $373 million of debt in the second quarter. Bombardier’s total debt stood at $7.2 billion as of March end, according to Refinitiv data.
(Reporting By Allison Lampert in Montreal and Abhijith Ganapavaram in Bengaluru; Editing by Shounak Dasgupta)
