The Brazilian OEM Embraer is on pace to deliver nearly 150 aircraft in 2021, according to the company’s forecasts in 2021’s third quarter. Embraer has been recovering from the COVID-19 pandemic and it posted a net loss of US$45 million during the quarter. Let’s investigate further.
Embraer’s delivery guidance
So far, Embraer has delivered 86 aircraft in 2021. The Brazilian manufacturer has provided 32 commercial jets, including 15 E175, two E190-E2, and 15 E195-E2. Meanwhile, it has delivered 54 executive jets throughout the year.
One of those executive jets was the 1,500th business jet delivered by Embraer, a milestone in the company’s history. Haute Aviation, a Swiss company, focused on charter, brokerage, and aircraft management, received the historic aircraft, a Phenom 300E.
Francisco Gomes Neto, Embraer’s CEO, said during an investor call,
“We have delivered 1,500 executive aircraft that indicates that we’re growing fast. It took us only 20 years to reach that number. Other competitors took on average 34 years to deliver this many aircraft.”
During the third quarter of 2021, Embraer delivered a total of 30 jets, of which nine were commercial aircraft, and 21 were executive jets.
What can we expect for the fourth quarter?
Embraer has strong ambitions going into the fourth quarter. The company expects it will be able to deliver up to 145 aircraft by the end of the year, which would mean delivering 59 commercial and executive jets between October and December.
Gomes Neto said,
“We expect these positive trends to continue. 2021 deliveries of commercial jets will be reaching between 45 and 50 aircraft and executive jets between 90 and 95.”
Historically, aircraft manufacturers finish the year strong, often delivering new aircraft up to the very last hours of the year. Nonetheless, Embraer has a substantial challenge ahead.
How big is Embraer’s backlog?
During 2021’s third quarter, Embraer announced the sale of 16 new E175 jets to SkyWest for operation in the Delta Air Lines network. This deal helped SkyWest become the largest E175 operator worldwide.
The value of SkyWest’s contract is US$798.4 million, based on the list price, said Embraer in a statement.
Embraer is satisfied with the current results so far. Gomes Neto stated,
“A strong backlog continues across the entire portfolio. We had record Q3 sales. Our backlog and service and support also grew compared to prior quarters. In summary, our backlog has reached levels not seen since 2019. We’re confident that our plan is working, and revenue and profitability will continue to increase.”
The firm order backlog in the commercial aviation segment for Embraer is 313 aircraft. The OEM has to deliver 151 E175, three E190, five E190-E2, and 154 E195-E2.
Regarding the Embraer E175, the company still has to deliver 12 aircraft to Horizon Air, 100 to Republic Airlines, and 39 to SkyWest.
The backlog for the E190 is three aircraft to Egypt’s leasing company CIAF. Embraer has to deliver one E190-E2 to Air Kiribati and two apiece to Aircastle and Congo Airways.
Finally, regarding the E195-E2, Embraer has to deliver 33 units to Aercap, nine to Air Peace, 21 to Aircastle, 51 to Brazil’s Azul, two to Congo Airways, eight to ICBC, and 30 to Porter.
What do you think of Embraer’s results? Let us know in the comments below.
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