Tag: outlook (Page 2 of 2)

Honeywell Forecasts 7,600 New Business Jet Deliveries Over Next Decade

October 20, 2019 / WIL BALDWIN

– 28th annual Global Business Aviation Outlook projects 2020 deliveries to be higher than 2019 as new models enter service

– Five-year purchase plans for new business jets down slightly, but plans to buy used jets grow significantly

– Long-range forecast predicts healthy market with steady annual growth

LAS VEGAS, Oct. 20, 2019 /PRNewswire/ — The business jet industry is expected to see strong growth in the short to medium term, supported by several new airplane models coming to the market, according to Honeywell’s (HON) 28th annual Global Business Aviation Outlook. Released today, the Global Business Aviation Outlook forecasts up to 7,600 new business jet deliveries worth $248 billion from 2020 to 2029, down 1 to 2 percentage points from the 2018 10-year forecast.

Honeywell Logo. (PRNewsFoto/Honeywell) (PRNewsfoto/Honeywell)

“Production ramp up on many new business jet platforms are expected to lead to a 7% increase in deliveries in 2020, following a strong projected growth in 2019 over 2018 aircraft deliveries,” said Heath Patrick, president, Americas Aftermarket, Honeywell Aerospace. “We are confident that these new and innovative aircraft models will support solid growth in the short term and have a continuing impact on new business jet purchases in the midterm and long term.”

Key findings in the 2019 Honeywell global outlook include:

Operators plan to make new jet purchases equivalent to about 17% of their fleets over the next five years as replacements or additions to their current fleet, a decrease of 3 percentage points compared with 2018 survey results.
Of the total purchase plans for new business jets over the next 5 years, 35% are expected to occur in the first two years of the survey, with 57% of purchase plans realized by year three. This is 5 percentage points higher than last year’s survey.
Operators continue to focus on larger-cabin aircraft classes, from large cabin through ultralong-range aircraft, which are expected to account for more than 71% of all expenditures of new business jets in the next five years.

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Spirit Airlines to Take $25 Million Hit from Hurricane Dorian

September 7, 2019 / WIL BALDWIN

FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse

(Reuters) – Spirit Airlines <SAVE> on Friday cut its third-quarter outlook for a key revenue measure as it estimates an about $25 million hit on its sales, hurt by hundreds of flights cancellations due to Hurricane Dorian.

The company now expects third quarter unit revenue to fall between 2.5% and 3.5% compared to its prior estimate of a decline of 1% to 2%.

The hurricane has led airline operators including American Airlines <AAL.O> and Delta Air Lines <DAL.N> to cancel thousands of flights across the United States this week.

Dorian, which briefly made a landfall on the Outer Banks of North Carolina on Friday, is expected to bring tropical storm winds to Nantucket Island and Martha’s Vineyard, Massachusetts early on Saturday

https://in.reuters.com/article/us-storm-dorian-usa/hurricane-dorian-hits-north-carolinas-outer-banks-idINKCN1VR0OK.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)

Daimler Cuts 2019 Profit Outlook on Diesel Issues

June 23, 2019 / WIL BALDWIN

FRANKFURT (Reuters) – Daimler has cut its earnings outlook for this year after lifting provisions for issues related to its diesel vehicles by “a high three-digit million euro amount”, the carmaker said on Sunday.

Group earnings before interest and tax for 2019 are now expected to be at last year’s level. Previously, the carmaker had expected the figure to be “slightly higher”.

The revision is related to an increase in expected expenses linked to “various ongoing governmental proceedings and measures with regard to Mercedes-Benz diesel vehicles,” the company said.

A spokesman declined to elaborate on the nature of those issues.

However, Sunday’s profit warning follows news over the weekend that Daimler must recall 60,000 Mercedes diesel cars in Germany after regulators found that they were fitted with software aimed at distorting emissions tests.

The transportation ministry said it was expanding its investigation into further models.

The company also said it was reducing its forecast for the return on sales for Mercedes-Benz vans.

It now sees a return between minus 2% and minus 4%, below its previous forecast of a return on sales of 0% to 2%.

(Reporting by Tom Sims; Editing by Jan Harvey)

Boeing Supplier Spirit AeroSystems Suspends Outlook

May 1, 2019 / WIL BALDWIN

(Reuters) – Boeing Co’s largest supplier Spirit AeroSystems Holdings Inc reported strong first-quarter results on Wednesday, while following the planemaker in suspending its full-year outlook in the face of the global grounding of 737 MAX jets.

The crisis with Boeing’s most popular aircraft has thrown into doubt orders for a raft of parts makers who have been investing heavily to meet record-breaking demand from the world’s biggest planemaker over the past two years.

Spirit, which makes fuselage, structural engine components and wing parts for the MAX, did a deal with Boeing last month to stick to its current parts delivery schedules for now, and its profits in the first quarter were up 30 percent, according to Wednesday’s quarterly results.

Boeing however has announced cutbacks in its monthly production of MAX jets to 42 from 52 and while it says it is nearing certification for a software fix for the jet, airlines are assuming the planes will not be back in the air before August.

Spirit said with the uncertainty around MAX production it could not stand by its previous full-year outlook which had factored production for MAX jets rising to 57 units per month in June.

“As we now expect to remain at 52 aircraft per month for some period of time, (prior) guidance does not reflect our current outlook,” Spirit Chief Executive Officer Tom Gentile said, adding he was waiting for more clarity from Boeing on MAX’s return to service.

MAX’s other major supplier General Electric Co, which makes engines with Safran SA of France, on Tuesday stuck to its full-year forecasts, while highlighting risk due to MAX’s reduced production.

Another MAX supplier United Technologies Corp last month included an up to 10 cents per share impact in its full-year profit outlook from the groundings of the jet, assuming Boeing produced at 42 aircraft per month for the rest of the year.

Spirit, whose shares are down about 10 percent since the fatal crash of the Ethiopian Airlines’ jet on March 10, rose as much as 3.5 percent to $89.96 in morning trade.

“Given that (Spirit’s) shares have already notably sold off, we think much of this … has been discounted into the price,” Vertical Research Partners Krishna Sinha said.

The company said it has taken actions including deferring capital investments and pausing hiring and share repurchases to mitigate the financial impact of the MAX production change.

On an adjusted basis, Spirit earned $1.68 per share, beating analysts’ average estimate of $1.64 per share, according to IBES data from Refinitiv.

Total revenue rose 13.4 percent to $1.97 billion (£1.51 billion), beating estimates of $1.93 billion.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)

Honeywell Forecasts 7,600 New Business Jet Deliveries Over Next Decade

Spirit Airlines to Take $25 Million Hit from Hurricane Dorian

Daimler Cuts 2019 Profit Outlook on Diesel Issues

Boeing Supplier Spirit AeroSystems Suspends Outlook

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