MONTREAL (CP) -- Canadian aircraft manufacturer Bombardier was among the hardest hit as business jet activity slowed in July under the weight of a slower global economy, one industry analyst says.
Total domestic and international business jet flight cycles fell by 11 per cent last month, pushing the total number of takeoffs and landings this year down seven percent, said a report by UBS analyst David Strauss.
Short-range aircraft led the decline as this category of planes with a range of less than 2,000 nautical miles sustained a 10-percent reduction, compared to a drop of five percent for long range planes, and three per cent for medium range airplanes.
Montreal-based Bombardier and Dassault Aviation of France endured the largest declines as use of their business jets each fell by 10 percent so far this year. Flights of Hawker Beechcraft planes were seven percent lower, followed by Cessna at five percent, and Gulfstream down two percent.
Although the weakened economy may have influence the use of these aircraft, strong orders suggest the business jet market is holding up, he said in a report.
"We believe the market has come off from its peak and is likely to fall further, although deliveries and earnings could continue to grow given unprecedented backlogs."
UBS said Cessna aircraft flew 39 percent of all business jet flights in the past 12 months, followed by Bombardier at 23 percent, Hawker Beechcraft at 16 percent, Gulfstream at 11 percent and Dassault at nine percent.
In the face of an economic slowdown, Bombardier shares have soared, gaining nearly 25 percent this year.
On Wednesday, they gained two cents to $7.53 in trading on the Toronto Stock Exchange.