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Paris Olympics singe CAE profits as demand for pilot training drops
MONTREAL — CAE Inc.'s chief executive says demand for pilot training dropped in its latest quarter, due in part to lower travel volumes to Europe because of the Paris Olympics.
CEO Marc Parent told analysts on a conference call Wednesday that the Olympic Games as well as the Euro Cup "altered normal travel behavior."
Carriers including Air Canada, Delta Air Lines and Air France all reported that the summer games hurt their seasonal sales, as travellers opted to steer clear of France, where parts of central Paris were closed off for the duration of the event.
CAE, which makes flight simulators and trains commercial pilots, says an even bigger factor in its 26 per cent year-over-year profit drop in the quarter ended June 30 was a general decrease in short-term demand.
Parent says that delays at plane manufacturers such as Boeing Co. have pushed back fleet expansion and pilot training at some airlines, while others have at last filled the hiring gap caused by the travel rebound after the COVID-19 pandemic.
For this fiscal year, CAE's civil segment is forecasting operating income growth of about 10 per cent, slightly lower than previous expectations.
This report by The Canadian Press was first published Aug. 14, 2024.
Companies in this story: (TSX:CAE)
