Bombardier Inc. posted a net loss and a nearly 7% drop in second-quarter revenue Friday, hurt in part by lower revenue from its business-jet operations.

Still, the Canadian transportation company's top line came in ahead of analyst expectations, and the company backed its full-year guidance after a quarter that saw the launch of its long-awaited new CSeries jet.

Montreal-based Bombardier reported a loss of $490 million, or 24 cents a share, in the quarter ended June 30, compared with a profit of $125 million, or 6 cents a share, a year earlier.

Adjusted to exclude one-time items, the company recorded a loss of 6 cents a share; analysts polled by Thomson Reuters forecast a loss of 5 cents a share.

Revenue of $4.31 billion was down from $4.62 billion a year earlier but better than the $4.17 billion analysts expected.

Bombardier's business-jet operations have been stung by political and economic instability in some of its markets, such as China and Latin America, and last year, it scaled back production of its biggest and most lucrative business jets. Business-aircraft deliveries in the latest quarter fell to 42 from 47, contributing to a 19% drop in revenue for the division.

Last quarter, Bombardier also reported a loss and declining revenue, but the disappointing results were overshadowed by news of a landmark CSeries order for up to 125 planes from Delta Air Lines Inc. Following that, Canadian air carrier Air Canada completed a deal for up to 75 jets, including 45 firm orders.

"This was a pivotal quarter for the CSeries," Chief Executive Alain Bellemare said in a release, noting that the program has started generating revenue.

In late June, Bombardier delivered its first CSeries jet to launch operator Swiss International Air Lines, which made its maiden flight with passengers July 15.

Bombardier backed its full-year guidance for revenue of $16.5 billion to $17.5 billion and free cash flow usage of $1 billion to $1.3 billion. Free cash flow usage in the latest quarter totaled $490 million.

Write to Judy McKinnon at judy.mckinnon@wsj.com

(END) Dow Jones Newswires

August 05, 2016 08:05 ET (12:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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