Embraer’s outlook improves as supply chain stabilizes, near-term availability drives demand

Subscription Required

By Judson Rollins

Introduction 

July 8, 2024, © Leeham News: Embraer is on track for a relatively upbeat Farnborough Airshow later this month, having been spared most of the supply chain headwinds plaguing Airbus and Boeing.

It is expected to reveal updates to its E-Jet family at Farnborough, including lower maintenance costs, cabin upgrades, and more.

Source: Embraer.

In May, the Brazilian OEM reaffirmed its target of 72-80 commercial deliveries this year, citing the stabilization of its global supply chain. It doesn’t disclose its commercial production rate. But its peak production reached 96 E-Jets per year pre-COVID.

Embraer’s reported backlog as of March 31 was the highest in company history: 187 E175s, 12 E190-E2s, and 178 E195-E2s. The company has since taken orders for 10 more E190-E2s and 13 E195-E2s, and has delivered approximately 18 E2s overall, according to Planespotters.net.

Most previous-generation E175s are being built for major US airlines subject to pilot “scope clause” or regional airlines operating on their behalf. Scope clause restricts how many aircraft can be flown below a certain number of seats (generally 76-80) or 86,000 lbs MTOW to protect mainline pilots from having their work outsourced to lower-paying regional airlines.

Summary

  • E2 delivery slot availability is a key advantage.
  • E195-E2 economics favor smaller markets, while the A220 is better suited to longer routes.

To read the rest of the article Login or Subscribe today.