Now that Airbus has taken control of the CSeries program, Bombardier Commercial Aircraft (BCA) said it will focus on returning to profitability by reducing the cost structure for its regional airliners, increasing production volume and growing aftermarket revenue, Bombardier CEO Alain Bellemare told analysts on the company’s Aug. 2 second-quarter results call.

Results for the CSeries—now rebranded the Airbus A220—will not be de-consolidated until the third quarter, but the company has restated its full-year guidance for BCA, projecting revenues of about $1.7 billion on deliveries of 35 CRJ-series and Q400 aircraft.

BCA is projected to make a full-year loss of around $250 million before interest and tax in 2018, net of Bombardier’s reduced, 33.5% share of results at the Airbus-led CSeries Aircraft Limited Partnership (CSLAP). “We are working to improve the cost structure to drive volume and restore profitability,” Bombardier CFO John Di Bert told analysts.

After a promising second quarter in which BCA booked orders for 35 CRJs—15 from Dallas/Fort Worth-based American Airlines and 20 from Atlanta-based Delta Air Lines—and boosted its backlog to 60 aircraft, “there will likely be additional volume on the CRJ next year,” Di Bert said. Backlog on the turboprop Q400 stands at 56 aircraft.

BCA revenues for the quarter were $616 million, down 2% from a year earlier, and the loss before interest and tax, and before special items, was $66 million. Those special items pushed the loss of $668 million and include a total of $599 million in charges related to the CSeries deal with Airbus.

Efforts to return BCA to profitability will focus on “the footprint after CSeries, and ensuring we have a lean stricture,” Di Bert said. “Adding a little volume will help.” Bombardier is also focused on growing aftermarket revenues from the more than 1,200 CRJs and 1,000 Q-series aircraft in service.

Overall, Bombardier’s revenues grew 3% for the quarter, to $4.3 billion. Before special items, earnings before interest, tax, depreciation and amortization grew 7% to $336 million. Di Bert said the strong second quarter is keeping Bombardier on track to meet its 2020 revenue target of $10 billion.

The CSeries charge, which includes the $269 million fair value of warrants for Bombardier shares issued to Airbus, was offset by the sale of the Downsview, Toronto, facility where the Global and Q400 are assembled. Net proceeds of $600 million from the sale are expected to enable Bombardier to break even on free cash flow for 2018.

Graham Warwick/Aviation Week