SAO JOSE DOS CAMPOS, Brazil, June 17 (Reuters) - Embraer ( ERJ )

heads into the Farnborough Airshow next month riding

tail winds that have lifted its shares to an all-time high, as

recent orders show the Brazilian planemaker ready to fill a gap

for airlines starved for new planes in coming years.

The news has boosted hopes for Embraer ( ERJ ) ahead of the major

industry event on July 22 to 26, when planemakers often announce

major orders. Last year, investors were disappointed by

Embraer's ( ERJ ) weaker-than-expected numbers at the Paris Airshow.

Sao Paulo-traded shares of the company are up nearly 70%

this year and hit a record high last week, by far the top gainer

on the benchmark Bovespa stock index. Several analysts

still see room to rise.

This month, Embraer ( ERJ ) bagged an order for 20 E2 jets from

state-run Mexicana de Aviacion, opening a new market for its

next-generation commercial jets and growing its backlog of firm

orders from a seven-year high of $21.1 billion hit in March.

"We continue to see a healthy environment for new orders,"

XP Investimentos analysts told clients after the announcement.

Embraer ( ERJ ) last year revealed only 13 orders for commercial

jets at the Paris Airshow, falling short of market estimates and

previous years. But carriers are struggling increasingly with an

aircraft shortage constraining their capacity, which has

presented new opportunities for the Brazilian company.

Embraer ( ERJ ) has production slots available from 2026, meaning it

can deliver on new jet sales before larger rivals Boeing ( BA )

and Airbus, the latter having sold out its production

of single-aisle jets until the end of the decade.

Market watchers say Embraer's ( ERJ ) available slots may help it to

serve short-term growth plans for carriers such as Mexicana. The

Brazilian planemaker's traditional niche fits just below the

Boeing ( BA ) and Airbus's best-selling 150-seat-plus market.

The Mexican order, JPMorgan said, "corroborates with our

thesis that Embraer ( ERJ ) should continue to benefit from a lack of

slots from peers to deliver aircraft in the mid-term."

Mexicana's deal with Embraer ( ERJ ) came after much-touted talks

with Boeing ( BA ), which analysts indicated may not have progressed

because of the U.S. planemaker's extended delivery deadlines.

The move may also give the E2 family an extra push in North

America. The smaller, first-generation E1 jets are the backbone

of regional aviation in the U.S., but Embraer ( ERJ ) hopes to break

into that key market with its E195-E2 "small narrowbody".

The E2s were initially slow-selling due to the COVID-19

pandemic, Pratt & Whitney's engine supply shortages and

a mismatch between the weight of the aircraft and "scope clause"

restrictions in U.S. pilot union agreements.

"We believe the successful entry of E2s in Mexico will

subsequently help boost the aircraft's debut in the U.S.

regional market once the scope clause regulations are updated,"

BTG Pactual analysts said.

The E2 flies in Canada with Porter Airlines, including some

routes to the United States.

"Embraer's ( ERJ ) four divisions are all experiencing favorable

industry landscapes," BTG said, also citing successful campaigns

for sales of the flagship C-390 Millennium military aircraft to

countries such as South Korea and Austria. "We're buyers (of

Embraer's ( ERJ ) shares)."