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Embraer deliveries rise 88% in second quarter, order backlog at 7-year high
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Embraer deliveries rise 88% in second quarter, order backlog at 7-year high
Jul 18, 2024 5:39 PM

SAO PAULO, July 18 (Reuters) - Brazilian planemaker

Embraer ( ERJ ) said on Thursday it had delivered 47 aircraft

in the second quarter of 2024, an 88% increase from the prior

year, and reaffirmed its full-year outlook despite ongoing

aerospace industry supply chain issues.

The world's third-largest planemaker behind Airbus

and Boeing ( BA ) delivered 19 commercial and 27 executive jets

in the April-June period, as well as one defense C-390

Millennium jet.

In a securities filing, Embraer ( ERJ ) said its firm order backlog

reached $21.1 billion at the end of June, the highest in seven

years.

The delivery report comes days ahead of the Farnborough

Airshow, when planemakers often announce major orders. Investors

have been positive about Embraer's ( ERJ ) demand prospects, with shares

in the planemaker up more than 80% so far this year.

Embraer ( ERJ ) has been experiencing strong demand for its next

generation E2 jets as carriers face a shortage of larger

single-aisle planes from Airbus and Boeing ( BA ), and has also managed

to convert business jet purchase options into firm orders.

The Brazilian firm plans to deliver 72 to 80 commercial

aircraft this year, up from 64 last year, as well as 125 to 135

business jets, up from 115 in 2023.

Chief Executive Francisco Gomes Neto told Reuters last month

the firm was confident in reaching its commercial aircraft

target this year and could deliver up to 90 of its E-Jets to

airlines next year.

Embraer ( ERJ ) has seen opportunities emerge as it has

production slots available from 2026, meaning it can deliver on

new jet sales before Boeing ( BA ) and Airbus, the latter having sold

out its production of single-aisle jets until the end of the

decade.

Recent orders include 20 E2 jets from Mexicana de

Aviacion and NetJets' converting options for up to 250 Praetor

500 executive jets into firm orders.

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