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The pandemic hurts CAE

The COVID-19 pandemic, which has historically put a damper on the civil aviation industry around the world, has not spared CAE, which has seen its revenues plummet over the past year.

The Montreal flagship specializing in flight simulators concluded its 2021 financial year on March 31 with a net deficit of $ 47.5 million. By comparison, the company had raked in profits totaling $ 318.9 million the previous year.

It must be said that the fall in income from ordinary activities, which fell from just over $ 3.6 billion in 2020 to just under $ 3 billion in 2021 (-18%) did not help the ‘business.

More encouraging, CAE’s results regained strength this winter, in the fourth and final quarter of the year, as vaccination began around the world and a return to pre-pandemic life began to emerge.

In fact, revenues fell from $ 977.3 million in the fourth quarter of 2020 to $ 894.3 million in the fourth quarter of 2021, down 8%, a rate much lower than for the rest of the year. CAE was even able to generate a profit of $ 18.8 million for this quarter, an amount that remains far from the $ 81.1 million recorded at the same date in 2020.

CAE executives say they are satisfied with these results because of the context.

“Given the magnitude of the repercussions of COVID-19, I am particularly satisfied with what we were able to achieve in fiscal year 2021. Faced with the greatest shock in the history of civil aviation and the major disruptions in the defense and healthcare markets, CAE returned to quarterly profitability and positive free cash flow after only our first quarter, ”noted CAE President and CEO Marc Parent, in revealing the financial results by press release Wednesday.

“We anticipate strong growth for fiscal 2022, with a recovery that continues to be highly dependent on when and how quickly travel restrictions and quarantines are finally lifted.” […]. In the long term, we are more convinced than ever that CAE will emerge from this period in a position of strength, ”added Mr. Parent, praising the fact that the Montreal company took advantage of the pandemic to make acquisitions and launch new ones. services.

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