Gulfstream Aerospace parent company General Dynamics has announced its business jet shipments have risen by 25 per cent over the first half of 2019.
The increase was driven by large-cabin demand, which saw delivery of 50 jets – up from 37 a year ago – while midsize jet deliveries remained at 15 for the same time period.
The aerospace division at General Dynamics, which also includes Jet Aviation, posted a first-half revenue increase of 17.3 per cent year-over-year to $4.332 billion.
However, earnings at the aerospace division fell by $73 million to $659 million, due to an increase in preowned transactions, from two last year to five in 2019, eroding margins.
The second quarter also generated lower profits than last year, with a margin of 15.5% down from 20.4% from the same period in 2018 – which General Dynamics chairman and CEO Phebe Novakovic called a “banner” period, and therefore difficult to match.
Novakovic did note that, following the Federal Aviation Administration’s (FAA) certification of Gulfstream’s latest aircraft, the G600, the company is set to make their first delivery of the jet in early August.