Flying High: CAE And Batik Air Ink 10-Year Deal For Pilot Training

CAE Inc CAE penned a 10-year pilot training agreement with the Malaysian airline Batik Air. 

Per the terms, the company will deploy and operate an advanced B737 MAX full-flight simulator at Batik Air's facility in Kuala Lumpur. The financial terms were not disclosed.

Also, Batik Air will adopt CAE's data-driven training system, CAE Rise, to deliver more effective training and boost operational safety.

The deal enhances the long-term relationship between CAE and Batik Air, underscoring their focus on creating highly skilled pilots.

CAE forecasts airlines to require 252,000 pilots, 328,000 maintenance technicians, and 599,000 cabin crew members over the next decade.

Earlier this month, CAE reported Q1 FY24 sales growth of 13% year-over-year to $784.91 million, beating the consensus of $762.48 million. Adjusted EPS was $0.18, beating the consensus estimate of $0.16.

Net cash used in operating activities was C$(49.3) million for the quarter, compared to C$(162.6) million in 1Q23. Free cash flow was negative C$(104.9) million.

Price Action: CAE shares closed lower by 0.09% at $23.34 on Monday.