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.

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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.