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UPDATE 1-Textron profit drops 48% as business jet deliveries fall

(Adds details on business jet deliveries)

Oct 29 (Reuters) - Textron Inc reported a 48% fall in quarterly profit as the Cessna business jet maker’s big corporate clients canceled aircraft orders or deferred deliveries to cut costs during the coronavirus crisis.

The company’s business jet deliveries fell 44% to 25 planes in the third quarter ended Oct. 3, but recovered from a 50% slump in the second quarter.

Even though new jet deliveries have continued to decline this year, the pandemic has underscored the lower risk profile of these smaller planes that carry fewer travelers than large commercial airplanes.

That has led affluent travelers to ramp up orders of pre-owned business jets by 9% to 643 during the third quarter, data from aviation market research firm JetNet IQ showed, with companies like Textron likely to benefit as this could translate to new aircraft orders in the future.

The company’s net income fell to $115 million, or 50 cents per share, in the quarter, from $220 million, or 95 cents per share, a year earlier. (Reporting by Ankit Ajmera in Bengaluru; Editing by Devika Syamnath)

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