Company News

UPDATE 1-Commercial pilot training unit drives profit beat at Canada's CAE

(Adds details on the quarter)

MONTREAL, Feb 7 (Reuters) - Canada’s CAE Inc, the world’s largest civil aviation training company, on Friday reported a better-than-expected profit, driven by strength in its commercial pilot training and simulators business.

CAE is inking deals to train pilots for airlines like easyjet Plc, as air traffic rises.

Both CAE and U.S.-based Textron Inc’s TRU training division are also seeing an increase in demand for flight simulators after Boeing earlier this year recommended that airline pilots retrain before flying the grounded 737 MAX plane, which is being fixed by the planemaker for a software problem.

Revenue in CAE’s civil aviation training business jumped about 22% to C$558.1 million in the third quarter ended Dec. 31.

CAE reaffirmed its full-year outlook for 30% growth in operating income in the civil aviation training business.

Montreal-based CAE said net income attributable to shareholders rose 26% to C$97.7 million ($73.4 million), or 37 Canadian cents per share, in the quarter.

Revenue rose 13% to C$923.5 million.

Analysts on average had expected quarterly earnings of 35 Canadian cents per share and revenue of C$939.7 million, according to IBES data from Refinitiv. ($1 = C$1.33) (Reporting By Allison Lampert; Additional reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)