SAO PAULO, Dec 17 (Reuters) - Embraer ( ERJ ) said on
Tuesday that Luxembourg-based Luxair has placed a firm order for
two more E195-E2 jets, bumping up its 2023 order of four
aircraft and helping to drive shares of the Brazilian planemaker
higher.
The first Luxair E2 is expected to be delivered in 2026, the
Brazilian company said in a statement, adding that the new firm
order provides the carrier with additional delivery slots for
2027.
Luxembourg's flag carrier still holds delivery positions for
three other jets, Embraer ( ERJ ) said in a statement, which could be
converted into orders for the smaller E190-E2 airplane if
needed.
Embraer's ( ERJ ) shares were up around 2.5% in early Sao Paulo
trading, among the top gainers on Brazil's Bovespa stock index
, extending their year-to-date jump to 154% as demand for
the firm's aircraft remains strong.
The companies did not provide a price tag for the deal, but
analysts at JPMorgan said that it should add around $170 million
to Embraer's ( ERJ ) backlog considering list prices for the E195-E2,
likely increasing the firm's commercial aviation backlog by 2%.
"We view today's announcement as slightly positive for
Embraer ( ERJ ) given the continued backlog growth, which is at a record
high of $24 billion, with all segments having a book-to-bill
above 1:1," JPMorgan analysts said in a note to clients.
Separately, the world's third-largest planemaker after
Airbus and Boeing ( BA ) announced on Tuesday it was
opening an office focused on defense in Portugal, as it aims to
deepen ties with European and NATO clients.
Reuters reported last month that the office was part of
Embraer's ( ERJ ) plans as sales of its C-390 Millennium military cargo
aircraft gained pace in the region.
The company earlier this week said that Portugal, which
already operates the C-390, had also ordered 12 A-29N Super
Tucano light attack aircraft. The Portuguese government pegged
the deal at 200 million euros.
"It underscores the positive momentum of Embraer's ( ERJ ) defense
business," BTG Pactual analysts said.
"We expect favorable commercial momentum across all major
divisions and a depreciated Brazilian real to keep sustaining
positive momentum in Embraer ( ERJ ) shares."
(Reporting by Gabriel Araujo; Additional reporting by Isabel
Teles; Editing by Susan Fenton and Emelia Sithole-Matarise)