Brazil’s Embraer posts $121 million loss on coronavirus travel disruptions

FILE PHOTO: The logo of Brazilian aviation company Embraer is seen during the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker

November 10, 2020

(Reuters) – Brazil planemaker Embraer on Tuesday posted a $121 million loss for the third quarter, as the coronavirus pandemic curbed travel across the world, hitting demand for commercial jets and private planes.

Commercial jet revenue was the hardest hit, falling to $177 million from $408 million a year ago as the pandemic ravaged commercial travel.

But the executive jets division, which some analysts believed would be a bright spot as the ultra rich would spend to travel in isolation, also fell significantly. Executive jets revenue fell to $212 million from $363 million a year ago.

Its defense division, however, managed to grow its revenue on higher deliveries of military planes. Still, Embraer’s defense division remains a smaller business segment than making civilian planes.

The company said it burned through $567 million in cash during the quarter.

(Reporting by Marcelo Rochabrun; Editing by Andrew Heavens and Louise Heavens)

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *