TORONTO — Shares of train and plane maker Bombardier Inc. pushed higher early on Tuesday after falling hard the day before on news that United Airlines parent UAL Corp. had filed for bankruptcy protection, Reuters reports.
Bombardier shares, which raced to C$4.94 at the start of trading, were up 15 Canadian cents, or 3 percent, at C$4.85 at mid morning on the Toronto Stock Exchange.
The company has close commercial ties to United Airlines as a key supplier of regional jets to three of United’s feeder carriers.
Despite the uptick in Bombardier shares, which followed three straight losing sessions, some analysts were not convinced the shares are ready to rebound from recent losses.
“There’s a lot of uncertainty still in several places in Bombardier’s business,” said Steve Laciak, an analyst with National Bank Financial.
Laciak expressed concern with regional jet deliveries to some of the UAL associated regional airlines and “still weak” business jet sales.
UAL’s restructuring could affect deliveries or orders for Bombardier’s Canadair Regional Jets from United’s feeder airlines. That would hurt revenues and profits at Bombardier, which has already cut jobs on a downturn in the business jet market.