High demand for pilot training causes a jump in CAE annual revenue. The Canadian flight simulator manufacturer and training provider reported a $4.2 billion and a 25% top line increase in its 2023 year end.
The growing revenue is linked to sustained high levels of both new and experienced pilot demand across all commercial aviation segments. In March 2023, industry wide revenue passenger kilometres (RPK) increased 88.0% compared to the same month in 2022. Forecasts for RPK and passenger traffic illustrate upward growth, driving pilot training requirements.
“CAE delivered an excellent performance in the fourth quarter [2023] with over 40 percent adjusted segment operating income growth, which led to 23 percent growth for the year as a whole. Testament to the quality of these results, we generated strong free cash flow, for a 1.2 times conversion of annual adjusted net income. We also expanded our global reach and secured future growth with a record $5.0 billion in annual orders, for a record $10.8 billion adjusted backlog,” said Marc Parent, CAE’s president, and chief executive officer.
CAE has three main divisions including Civil Aviation, Defence and Security, and Healthcare. The total revenue generated by the company’s Civil Aviation arm, that has a focus on commercial aviation, was $2,166.4 million, and up 34% compared to last year.
In 2023, Civil training centre utilisation was 72%, while 46 full-flight simulators (FFS) were delivered to customers.
The annual operating income for CAE Civil Aviation in 2023 was $430.3 million, and 19.9% of revenue, compared to $224.1 million, and 13.9% of revenue recorded in the previous year.
In its 2023 financial year (FY), CAE sold 62 FFSs and booked orders for a record $2.8 billion. The Company expects Civil Aviation to continue growing at an above market rate, driven by the remaining stages of cyclical recovery in Asia.
Long-term training and digital flight services contracts were brokered in the fourth quarter (FY) 2023. This includes a 5-year pilot license cadet training agreement signed with Japan Airlines, a 3-year training agreement with Aerolineas Ejecutivas, and a 10-year flight next-gen crew and operations manager agreement with SkyWest Airlines.
CAE Civil Aviation also entered a joint venture with AEGEAN, to establish the first advanced flight training centre in Greece. The new centre will have capacity for up to seven FFS and plans to begin pilot and cabin crew training by the end of 2023. The new generation training centre will be powered by green energy.
Plans were also announced to expand its business aviation training network with a new central European facility in Vienna, Austria, scheduled to open in the second half of calendar 2024. A new Las Vegas business aviation training centre will have capacity for eight FFSs.
Image accreditation: CAE media gallery
