Bombardier Inc (BBDb.TO) announced on Thursday a much-anticipated order from Delta Air Lines (DAL.N) for up to 125 of its CSeries passenger jets, throwing a lifeline to the Canadian company which also reported a quarterly loss.Bombardier said Delta’s firm order for 75 CS100 aircraft, with options for an additional 50, was worth about $5.6 billion based on the list price. Deliveries are scheduled to begin in 2018, the Quebec-based company said.The CSeries program, which is years late and billions of dollars over budget, nearly sank Bombardier last year but a flurry of cash injections and deals have helped to stabilize the company.
The Delta order, along with Air Canada’s (AC.TO) commitment early this year to buy 45 CSeries jets, has helped improve sentiment around the program and boosted Bombardier’s share price. The program, however, is not expected to turn a profit until about 2020.The embattled Canadian plane and train maker reported a bigger-than expected first-quarter loss of 3 cents per share, compared with the average analyst estimate for a loss of 1 cent per share, according to Thomson Reuters I/B/E/S.
Revenue fell nearly 11 percent to $3.91 billion.
(Reporting by Euan Rocha and Sweta Singh; Editing by Savio D’Souza and Ted Kerr)Download