Embraer Sales, Deliveries Rebound In Second Quarter

Embraer Praeter 600
Credit: Embraer

Embraer expects to deliver 90-95 business jets and 45-50 commercial aircraft in 2021, up from 86 and 44, respectively in 2020 as the market recovers to pre-pandemic levels and growth continues, the company reported.

In an earnings presentation, Embraer officials said they expect executive-jet deliveries of more than 120 a year in the medium term with stronger growth in its service business and plans to capture more market share. Orders from first-time buyers, meanwhile, make up about 30% of Embraer’s executive-jet backlog.

Overall, Embraer has the potential to almost double its revenue in the medium term, Embraer President and CEO Francisco Gomes Neto said Aug. 13.

“This year is one of recovery,” Neto told analysts in a presentation. “Next year, we intend to capture Embraer’s full potential.”

Embraer is working to gain efficiencies by improving activities, reducing costs and boosting performance, Neto said.

Embraer delivered 20 executive aircraft in the second quarter—12 light jets and eight large jets—and 14 commercial jets, compared to four commercial jets and 13 business jets in the second quarter of 2020, the period most negatively affected by the COVID-19 pandemic, the company said. For the first half of 2021, deliveries totaled 23 commercial jets and 33 executive jets, a growth of 80.7% from the same period a year ago.

Significant commercial aircraft orders during the second quarter included 30 E195-E2 jets for Toronto-based Porter Airlines, with purchase rights for an additional 50 aircraft. The order will make Porter the launch customer for the E2 type in North America once entry into service is reached in the latter half of 2022. Additionally, 18 E175s were ordered by Alaska Airlines, to be split evenly between Alaska’s Capacity Purchase Agreement regional carriers Horizon Air and SkyWest Airlines, with deliveries set to begin in 2022.

Revenue for the second quarter totaled $1.13 billion, up 110.4%, with revenue for the first six months of 2021 up 65.5%. Embraer returned to profitability in the second quarter, with net income of $87.9 million. During the first half of 2021, the company posted a net loss of $1.8 million.

Its order backlog at the end of the second quarter totaled $15.9 billion.

Molly McMillin

Molly McMillin, a 25-year aviation journalist, is managing editor of business aviation for the Aviation Week Network and editor-in-chief of The Weekly of Business Aviation, an Aviation Week market intelligence report.