A US$8 million first-quarter loss has pushed Cessna to temporarily halt production of the Mustang and CJ-series aircraft. It will also reduce its workforce to help stem ongoing losses.
Deliveries of the aircraft were 38 per cent down during the period, with the company saying light jet sales were down across the sector.
“The light market just hasn’t recovered at this point, contrary to our expectations, and so we’re going to scale back some of the production and reduce the number of aircraft that are out there in that space,” said Scott Donnelly, chairman and CEO of Cessna parent company Textron. “The demand just isn’t there.”
While the manufacturer’s revenue increase some US$39 million during the quarter, it was the sale of used jets that was the largest contributor.
Mid-size jet sales, however, remain buoyant and production of the updated Sovereign and new Citation X will begin later this year.