Bombardier shares tumbled 3% in morning trade. Corporate jet makers are reporting swelling order backlogs, as affluent passengers continue flying private during the COVID-19 pandemic. Chief Executive Eric Martel told analysts Bombardier would look to reassess 2022 free cash flow guidance of greater than $50 million later this year, after generating $173 million from continuing operations during the first quarter.
Buyer "hysteria" for pre-owned business jets during the pandemic that triggered a recent wave of bidding wars is now easing, with more corporate aircraft coming up for sale, brokers say. The uptick in supply of pre-owned jets from historic lows will be in focus as corporate planemakers Textron Inc, General Dynamics Corp's Gulfstream and Bombardier Inc unveil earnings in coming weeks, with investors looking for any early signs of softening demand for new planes. While U.S. business jet traffic remains above 2019 levels, the combination of listed planes and aircraft sold through word-of-mouth is giving buyers more choice, while price increases have at least temporarily flattened.
French transport infrastructure company Alstom confirmed on Tuesday that it had filed a request for arbitration before the International Chamber of Commerce regarding its earlier purchase of Bombardier Transportation. "The claim is against Bombardier Inc. and relates to the breach of certain contractual provisions of the sale and purchase agreement dated September 16, 2020," said Alstom in a statement. Bombardier had earlier said it would defend itself against Alstom's legal action.