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Embraer ( ERJ ) still sees supply chain challenges in 2025, 2026

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Planemaker secured first US order for E2 plane this week

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Company not considering new US assembly line for E2 jets

By Gabriel Araujo

Sept 11 (Reuters) - Embraer ( ERJ ) expects to reach

100 commercial aircraft deliveries per year in 2028, its CEO

told Reuters, adding that supply chain issues will likely keep

the Brazilian planemaker from hitting that mark sooner.

The world's third-largest planemaker has increased annual

deliveries since 2021 as part of its recovery from the industry

crisis triggered by the pandemic. It forecasts between 77 and 85

commercial jet deliveries this year, up from 73 in 2024.

CEO Francisco Gomes Neto has warned previously that supply

chain snags would limit production plans for Embraer ( ERJ ), which last

cleared 100 annual commercial jet deliveries in 2017.

"2026 will still be a more challenging year for commercial

jet production," he said in an interview on Wednesday. "Starting

in 2027, we'll resume our strong growth plan, and I expect that

in 2028 we'll be hitting 100 commercial aircraft per year."

Last year, Embraer ( ERJ ) struggled with delays in engine supply

for its next-generation E2 jets. While that situation has

improved, it now faces issues with fuselage parts from Europe

and GE Aerospace engines for its first-generation E1 jets, Gomes

Neto said.

"The (delivery) outlook range we've been providing the

market has allowed us to deliver what we promise, despite all

the challenges in the supply chain," he noted.

"Embraer ( ERJ ) will continue to grow. We have orders to deliver,

there is a backlog, and our production slots are practically

closed for 2026 and 2027, and partially for 2028. The challenge

now is delivering the aircraft."

His remarks came after Embraer ( ERJ ) on Wednesday announced a firm

order for 50 E195-E2 aircraft from low-cost carrier Avelo

Airlines, the first U.S. deal for E2 jets, expanding its backlog

and underscoring solid demand.

It had previously amassed orders this year from clients such as

Japan's ANA and Scandinavian Airlines SAS, which purchased E2

jets, as well as U.S. carrier SkyWest, which placed orders for

E1 aircraft.

More E2 orders are possible this year, Gomes Neto said, as

several sales campaigns are ongoing. E1 jets, which serve almost

exclusively the U.S. market, are not expected to produce fresh

sales in 2025.

NO E2 U.S. PLANT

Despite the Avelo order and the new 10% U.S. tariff on its

Brazilian-built aircraft, Embraer ( ERJ ) is not looking at establishing

a U.S. E2 commercial jet assembly line, Gomes Neto said.

Any possible plant would hinge on a flurry of new orders, he

added, noting that the firm has preferred to focus its campaign

to eliminate the tariff on the existing benefits it offers to

U.S. suppliers and customers.

"We prefer to present Embraer's ( ERJ ) overall business case: over

the next five years, our plan is to purchase $21 billion from

the U.S. and export $13 billion," Gomes Neto said.

Embraer ( ERJ ) makes both generations of its commercial aircraft on a

hybrid line at the Sao Jose dos Campos plant in Brazil.

"To create a new line would require a huge investment, which

would lead to significant depreciation and make the product less

competitive," Gomes Neto said.

"If we sell thousands of aircraft, get orders for hundreds

of planes, then yes - it wouldn't be feasible to do it all (in

Brazil), and a second line could be located closer to the major

buyers. But that's not the case right now," he added.

The company runs assembly lines for some executive jets in

Florida, and has pitched a $500 million line in the U.S. for the

C-390 airlifter, should the country decide to purchase the

military cargo jet.