Bombardier shipments continue to grow
Bombardier reported that revenues climbed by 16 percent year-over-year in 2023, topping $8 billion, as it scaled deliveries to 138 Challenger and Global business jets. The aircraft manufacturer expects deliveries to take another step up to between 150 and 155 in 2024, returning to levels not seen since 2016.
This year, most of that growth is expected to come from its super-midsize Challenger 3500s, with Global deliveries remaining stable.
Bombardier president and CEO Éric Martel:
“While we have everything in place to achieve our objective, I want to highlight that our delivery profile for the year is largely set by the pace at which we receive parts from our supplier. We are in an environment where we continue to play the cards we are dealt versus planning an ideal production schedule.”
Martel is optimistic about solid sales continuing this year, despite headwinds involving conflicts in the Middle East and Eastern Europe. “We do foresee quite a bit of activity right now on all of our platforms. Looking at our prospect list and people we’ve talked to, [activity] has remained strong.” Customers are not disappearing, he said, but added that they may be taking more time.
In 2023, deliveries were up by 15 units on the year, with Challenger shipments increasing by 13, to 63, and Globals by five, to 75. However, 2022 totals also included three shipments from the now-discontinued Learjet line. Bombardier handed over 32 Globals in the last quarter, compared with 29 a year earlier, and 24 Challengers, compared with 20 a year earlier.
The rise in Global deliveries in 2025 coincides with planned market entry to the Global 7500 and Global 8000. Martel said the development has remained on track for certification and initial deliveries next year. “We are flying the airplane a lot,” he said. While the aircraft has generated substantial interest from customers, Bombardier is offering a retrofit option for the 7500, which he said is keeping activity solid on that aircraft even as the new version is in the wings.
Meanwhile, thanks to the significant investments in the service center space, the company continued to expand its aftermarket revenues and market share. Aftermarket brought in $1.75 billion, up 16 percent from a year earlier and 75 percent since 2020. Bombardier anticipates this to continue to grow as it works toward its goal of $2 billion in aftermarket in 2025.
NetJets will be the launch fleet customer for the Bombardier Global 8000, and the company has placed an order for an additional four aircraft, bringing the total orders for the fractional ownership pioneer to 24 aircraft. Those 24 orders include eight Global 7500s that will be upgraded to the Global 8000 in addition to the 12 previously on order. The new aircraft is expected to enter service in early 2025, and has a list price of $78 million per aircraft. Bombardier has planned a Supplemental Type Certificate program to upgrade existing Global 7500 models to the Global 8000 specifications shortly after entry into service.