RIO DE JANEIRO, BRAZIL – Brazilian aircraft manufacturer Embraer on Tuesday posted a US$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 US$177 million from US$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 jet sales revenue fell to US$212 million from US$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 US$567 million in cash reserves during the quarter.
Source: Reuters