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BBA Aviation still affected by slow down in US flying hours

Recent market data clearly implies a headwind to our expectation, it said
Plane
Global uncertainty is affecting flying hours

Aircraft ancillary services group BBA Aviation PLC (LON:BBA) is facing more uncertainty at its US business and general aviation arm.

“While we pointed to a softening of the US B&GA market at the half year, with expectations of the second half being broadly consistent with the first half, at around 2%, recent market data clearly implies a headwind to this expectation.”

READ: BBA Aviation expands with US$97mln acquisition of aerospace-focused aftermarket service provider, Firstmark

Total revenues in the ten months to October were 27% higher, while like-for-like sales grew by 2%.

Signature, the US B&GA business, improved revenues by 2.1%, which was much better than the market overall but it is facing growing pressures.

“The [B&GA] market continues to be impacted by global economic uncertainty which is impacting flying hours,“ said Mark Johnstone, chief executive.

Aftermarket services sales dropped by 4.4% due to the expected non-repeat of cyclical military orders in 2017.

Full year underlying operating profit to be broadly in line with expectations, BBA added.

 

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