(Reuters) – Canada’s Bombardier (OTC:BDRBF) Inc raised its 2022 forecast for revenue and free cash flow on Tuesday, underpinned by robust demand for private jet travel.
The Montreal-based planemaker now expects full-year revenue to come in at about $6.9 billion, up from its prior outlook of about $6.5 billion. Analysts on average expect the company to post an annual revenue of $6.56 billion, according to Refinitiv data.
Corporate jet makers have reported swelling order backlogs on persistent strong demand for flying private, especially in the United States, the world’s largest market for business aviation.
Planemakers, however, witness pressure from supply chain and labor disruptions as well as soaring inflation and broader concerns over a softening global economy.
Bombardier, which faced a cash crunch in 2015, is focused on lowering its debt, which dropped by $100 million during the third quarter.
The company, which has a worldwide fleet of about 5,000 aircraft in service, said it expects its full-year free cash flow to be about $735 million, compared with its prior estimate of $515 million.
Bombardier will release its fourth-quarter and full-year 2022 results on Feb. 9.