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Friday, October 29th, 2021

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Bombardier reports business aircraft revenues of US$1.4 billion for third-quarter 2021

Bombardier has released its financial results for the third quarter of 2021. The company is pleased with continued execution on its strategic initiatives, cash flow generation and order momentum driving the financial results of the quarter.

Business jet revenues of US$1.4 billion are up 17% year-over-year, propelled mainly by an improved delivery mix, with higher deliveries of large aircraft. The company has also seen an increase of revenues by US$76 million from business aircraft services. This is mainly due to increased fleet flight hours having now surpassed 2019 levels, a clear signal that the industry is on a strong recovery path from the global shock caused by the COVID-19 pandemic. Confidence levels within the industry are at a new all-time high, indicative of the rising vaccination levels and eased travel restrictions. In the U.S., business jet utilization increased by 42.5%, year-over-year for the first eight months of the year. In Europe, business jet utilization increased by 27.1% year-over-year in the first nine months of the year.

Bombardier reported an adjusted EBITDA of US$142 million, representing a year-over-year improvement of $58 million or 69%. The company attributes this to an improved aircraft mix, continued progress on Global 7500 aircraft learning curve, and cost structure improvements. Reported EBIT from continuing operations for the quarter was US$48 million.

For the second consecutive quarter, the company is seeing an improved free cash flow (FCF) generation. FCF of US$100 million from continuing operations represents an improvement of US$747 million year-over-year. The positive result is mainly due to stronger order intake and better payment terms on new orders.Reported cash flows from operating activities – continuing operations for the quarter was US$156 million, and net additions to PP&E and intangible assets – continuing operations for the quarter were US$56 million.

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DB Schenker, Lufthansa Cargo and Nokia join forces on CO2-neutral air freight

Towards a greener future, DB Schenker and Lufthansa Cargo will extend their weekly CO2-free freighter flights between Frankfurt and Shanghai. The joint mission will be continued throughout the entire winter flight schedule until March 2022. Now Nokia has signed up to the initiative. Every week, the global telecommunication network provider will avoid greenhouse gas emissions by using the world’s only freighter flight 100% covered by Sustainable Aviation Fuel (SAF), produced from renewable waste, such as used cooking oils.

With just a few days to go until the UN Climate Change Conference COP26, this announcement reinforces the importance of investing in sustainable aviation fuel solutions and is another step towards making global supply chains more climate friendly.

The fuel requirement for the flight rotation from Frankfurt (FRA) to Shanghai (PVG) and back is covered entirely by SAF. This saves around 174 tons of conventional kerosene every week. During the summer flight schedule 2021, the initiative successfully achieved a net reduction of 20,250 tons of greenhouse gases (CO2e). In the upcoming winter flight schedule, from the end of October 2021 to the end of March 2022, another 14,175 tons are expected.

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MTU Aero Engines generated stable revenue and earnings in the first nine months of 2021

In the first nine months of 2021, MTU Aero Engines AG generated stable revenue and earnings. Revenue was €3,008 million, compared with €2,957 million in the first nine months of 2020. The operating profit was €307 million; in the prior-year period it was €311 million. The adjusted EBIT margin was 10.2% (1-9/2020: 10.5%). Net income was almost unchanged year-on-year at €220 million (1-9/2020: €219 million).

“We managed to deliver stable earnings in persistently volatile market conditions. On this basis, we can now give more precise guidance for the full year,” said Reiner Winkler, CEO of MTU Aero Engines AG. “We now assume that revenue will be between €4.3 and €4.4 billion at year-end. The adjusted EBIT margin should be around 10.5%, which is the upper end of the range forecast to date.” In its guidance at the end of July, MTU gave a slightly broader range of €4.3 to €4.5 billion for revenue and predicted an adjusted EBIT margin of between 10% and 10.5%. The company expects adjusted net income to develop in line with the operating profit.

In the first nine months, revenue was affected by the US dollar exchange rate. CFO Peter Kameritsch: “There was some headwind from the exchange rate. In dollars, revenue grew by 8% in the first nine months.”

In euros, MTU registered higher revenue from both commercial maintenance and the military business in the first nine months of 2021.

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Airbus reports nine-month 2021 results

Airbus has reported consolidated financial results for the nine months ended 30 September 2021. “The nine-month results reflect a strong performance across the company as well as our efforts on cost containment and competitiveness. As the global recovery continues, we are closely monitoring potential risks to our industry. We are focused on securing the A320 family ramp up and striving to ensure the right industrial and supply chain capabilities are in place,” said Airbus Chief Executive Officer Guillaume Faury. “Based on our nine-month performance, we have updated our 2021 earnings and cash guidance. We are strengthening the balance sheet to secure investment for our long-term ambitions.

Gross commercial aircraft orders totalled 270 (9m 2020: 370 aircraft) with net orders of 133 aircraft after cancellations (9m 2020: 300 aircraft). The order backlog was 6,894 commercial aircraft on September 30, 2021. Airbus Helicopters booked 185 net orders (9m 2020: 143 units), including 10 helicopters of the Super Puma-family. Airbus Defence and Space’s order intake by value was €10.1 billion (9m 2020: €8.2 billion) with third quarter orders including 56 C295 aircraft for India, two A400Ms for Kazakhstan and support and spares contract renewals for the German and Spanish Eurofighter fleets.

Consolidated revenues increased 17% to €35.2 billion (9m 2020: €30.2 billion), mainly reflecting the higher number of commercial aircraft deliveries compared to 9m 2020. A total of 424 commercial aircraft were delivered (9m 2020: 341 aircraft), comprising 34 A220s, 341 A320 family, 11 A330s, 36 A350s and 2 A380s. Revenues generated by Airbus’ commercial aircraft activities increased 21 percent, largely reflecting the delivery performance compared to 2020 which was strongly impacted by COVID-19. Airbus Helicopters delivered 194 units (9m 2020: 169 units) with revenues up 14% reflecting growth in services as well as the higher deliveries, notably more helicopters from the Super Puma family. Revenues at Airbus Defence and Space were broadly stable year-on-year with four A400M military airlifters delivered in 9m 2021.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was €3,369 million (9m 2020: €-125 million).

The EBIT Adjusted related to Airbus’ commercial aircraft activities totalled €2,739 million (9m 2020: €-641 million), mainly driven by the operational performance linked to deliveries and efforts on cost containment and competitiveness.

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Inmarsat appoints Philippe Carette as President of Aviation Business Unit

Inmarsat, a leader in global, mobile satellite communications, has announced that Philippe Carette will be joining the company as President of its Aviation Business Unit on November 22, 2021.  

Carette joins Inmarsat from Thales, where he held several roles since joining the company in 2013. This includes the position of CEO of Thales’ InFlyt Experience Business Line (IFE), where he led a digital transformation of the business, leveraging cloud based disruptive applications and achieving a significant increase in customer satisfaction.  He has over 30 years’ experience in the technology and aerospace industries, which in addition to his tenure at Thales includes 14 years with the Safran Group, a major French aerospace engineering company.

Philip Balaam, currently business unit President for aviation, is moving into a new strategy role at Inmarsat, where he will be working with Chief Strategy Officer (CSO) Fredrik Gustavsson to reinforce the company’s growing, broad-based commercial momentum.

DRAKKAR Aerospace & Ground Transportation and Argo Aviation Group form joint venture

DRAKKAR Aerospace & Ground Transportation, a Canadian based company and Argo Aviation Group, a company formed in Germany, have announced the creation of a joint venture providing mobile repair services dedicated to the Americas under a new entity called Argo MRT Americas Inc.

Argo MRT Americas will be offering industry leading mobile repair services to OEM’s, operators, maintenance repair & overhaul and lessors across the Americas with a remarkable and enviable network access in Europe, as well as in Asia in the near future, through the well-established sister companies under ARGO MRT.

Argo MRT Americas’ principal focus for the upcoming months is on mobile repair services and will, by the end of 2022, offer inspection services including non-destructive testing (NDT), borescope and aircraft physical/record inspections. Within a four-hour timeframe, all customers will benefit from an estimate, ensuring a prompt deployment of a team of specialists in a period of twenty-four hours. These services will be provided 24/7, 365 days of the year. This process has been established under Argo MRT’s philosophy and will therefore, apply to Argo MRT Americas as well.

Included with its certifications, global network, quality work and reliable teams, Argo MRT Americas is going to deploy an advanced digital platform, accessible at all times by its customers, to track real-time progress of a given task and ensure proper documentation and traceability as requested by the authorities. This internal tool is extremely advantageous and will be securely deployed as it has already been tested and fully operational in Europe under Argo MRT.
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Tamar Jorssen
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Email: tamar.jorssen@avitrader.com
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Tamar