Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Canada's CAE in talks with airlines to win more pilot training business

Published 2020-08-12, 09:40 a/m
Updated 2020-08-12, 04:12 p/m
© Reuters.

© Reuters.

(Reuters) - CAE Inc (TO:CAE) said on Wednesday it is in advanced discussions with airlines about doing more training of their pilots after the company reported a bigger than expected quarterly loss due to COVID-19.

The world's largest civil aviation training company is cutting costs and counting on the easing of travel restrictions to bolster demand for pilot-training services.

Revenues from civil training, CAE's largest business unit,

dropped due to travel restrictions and lower customer demand during the quarter ended June 30, with a center utilization rate averaging 33% compared with 76% during the same three months a year earlier.

Chief Executive Marc Parent told analysts he sees opportunities to win outsourced training business from airlines, which are struggling to conserve cash.

"We're currently in advanced discussions with a number of airline customers to potentially do more for them," he said.

Montreal-based CAE said deliveries of flight simulators declined on an annual basis from five to two units during the quarter. CAE would make most of its anticipated 35-40 simulator deliveries during the back half of its fiscal year.

Demand for CAE's flight simulators is linked to new aircraft deliveries by planemakers Boeing Co (N:BA) and Airbus (PA:AIR), which are seeing lower jet sales.

CAE expects to cut about C$100 million in costs over the next 12 months to yield C$50 million in annual savings.

The company swung to a net quarterly loss of C$110.6 million ($83.36 million), or 42 Canadian cents per share, compared with a profit of C$61.5 million a year earlier.

On an adjusted basis, CAE lost 11 Canadian cents per share in the quarter, while its revenue declined 33.3% to C$550.5 million, compared with analysts estimates of a quarterly loss of 6 Canadian cents per share, according to IBES estimates from Refinitiv.

CAE stock was down 1.64% in afternoon trade.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.