Embraer‘s Forecast for Increased Aircraft Deliveries by 2028
Embraer, a leading regional jet manufacturer, forecasts a significant increase in production, aiming to deliver 100 commercial aircraft annually by 2028. This optimistic projection remains strong despite concerns regarding ongoing trade disputes between Brazil and the United States.
Order Boost from Avelo Airlines
Embraer’s ambitious outlook follows a crucial partnership announcement with Avelo Airlines, which includes an order for 50 E195-E2 series jets. This comes as a turnaround from earlier fears of a downturn similar to the COVID-19 pandemic, placing the company on a path of solid growth.
Impact of Supply Chain Challenges
As the third-largest aircraft manufacturer globally, Embraer’s role in the aviation industry is pivotal. Current estimates suggest that Embraer will deliver between 77 and 85 commercial jets in 2025, reflecting a potential 10% increase from past figures. However, disruptions in the supply chain, especially concerning aerostructures and engines, impacted deliveries in 2024. These issues are reportedly being addressed.
CEO’s Statement on Long-Term Goals
In 2017, Embraer reached 100 annual deliveries, a milestone the company aspires to achieve again. CEO Francisco Gomes Neto acknowledged ongoing supply chain challenges, projecting a more favorable production environment starting in 2027, with a vision to meet the 100-aircraft target by 2028.
Key Agreement with Avelo Airlines
The collaboration with Avelo represents a substantial $4.4 billion firm order agreement, slated to enhance Embraer’s production volume and market stability when deliveries commence in 2027. Avelo currently operates 22 Boeing 737 narrowbody planes, expanding its network to underserved locations since 2021.
Embraer’s Role in the US Regional Jet Market
Embraer stands as a vital supplier to the US regional jet sector. Its aircraft support numerous carriers, including subsidiaries of major airlines like American Airlines, United Airlines, and Delta Air Lines.
| Aircraft Type | Firm Orders | Deliveries | Backlog |
|---|---|---|---|
| E170 | 191 | 191 | 0 |
| E175 | 1000 | 792 | 208 |
| E190 | 568 | 568 | 0 |
| E195 | 172 | 172 | 0 |
| E190-E2 | 67 | 28 | 39 |
| E195-E2 | 330 | 140 | 190 |
E195-E2 Jet Features
The E195-E2, part of the E-Jet family, represents Embraer’s latest advancements in efficiency and technology. This model offers reduced fuel consumption and a quieter operation compared to its predecessors. The E195-E2 will debut with the new E2 Enhanced Takeoff System (E2TS), extending its range by 400 nautical miles while utilizing shorter runways, an innovation scheduled for launch in Key West, Florida, later this year.
