Embraer has released its second-quarter 2020 results. The Brazilian aircraft manufacturer delivered a total of 17 jets. However, of those, only four were commercial aircraft. In discussing the drop in deliveries, Embraer highlighted the ongoing global crisis that has significantly hampered airlines.
Only four commercial aircraft delivered
Embraer delivered a total of four regional jets in the second quarter of 2020. Two of these were Embraer 175 (E175s), and the other two were Embraer 190-E2 (E190-E2)s. Regional US carrier, SkyWest, took delivery of the two E175s. Helvetic Airways of Switzerland took on two E190-E2s.
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In the executive aviation segment, Embraer delivered 13 jets, including two Phenom 100s, seven Phenom 300s, one Legacy 650, one Praetor 500, and two Praetor 600s.
In comparison, back in 2019, Embraer delivered 26 commercial jets and 25 executive jets during the second quarter. In the second quarter of 2018, that number was 28 commercial jets and 20 executive jets.
The order backlog
Embraer has an order backlog, as of June 30th, totaling $15.4 billion. This includes 159 E175s, four E190s, 11 E190-E2s, and 140 E195-E2s for a total firm order backlog of 314 aircraft across the following customers:
- American Airlines: 11 E175s (headed for regional carriers)
- Horizon Air: 3 E175s (Alaska Airlines' regional carrier)
- NAC/Aldus (lessor): 1 E175 and 1 E190
- Republic Airways: 100 E175s (regional carrier in the US)
- SkyWest: 24 E175s (regional carrier in the US)
- United Airlines: 20 E175s (headed for regional carriers)
- CIAF (lessor): 3 E190s
- Air Kiribati: 1 E190-E2
- Aircastle (lessor): 5 E190-E2s and 20 E195-E2s
- Congo Airways: 2 E190-E2s
- Helvetic Airways: 3 E190-E2s and 4 E195-E2s
- Aercap (lessor): 40 E195-E2s
- Air Peace: 13 E190-E2s
- Azul: 51 E195-E2s
- Binter Canarias: 2 E195-E2s
- ICBC (lessor): 10 E195-E2s
Aircraft options, where a customer and manufacturer agree to the right to purchase additional aircraft at a set price and delivery date but are not firm orders, remained unchanged from the first quarter. Embraer has 401 options spread across 291 E175s, 63 E190-E2s, and 47 E195-E2s.
Celebrations at Embraer
While the second quarter of 2020 was a rough one for airlines and aircraft manufacturers around the world, Embraer did see some good news during and after the end of the second quarter. The 1,600th E-Jet went to Helvetic Airways. In fact, that same Helvetic Airways delivery flight even set a transatlantic flight record.
In addition, Congo Airways, which ordered two E175 jets in December 2019 with options for two more, converted its order to two E190-E2s, with options for two more. Helvetic also upgraded its orders to take on more of the larger E195-E2s.
Envisioning a post-Boeing Embraer
Much of Embraer's future at the start of the year revolved around the aircraft manufacturer's cooperation deal with Boeing in which the two would cooperate on manufacturing and selling aircraft. In the first quarter, Embraer blamed preparations for enacting that Master Transaction Agreement agreement as a result of lower deliveries.
While Embraer is now charting a path out of the current crisis, it has not let go of its big dreams. The manufacturer believes its aircraft are perfect for carriers right now, and it believes it has a "stable" production program with no cancellations. Embraer is even looking at developing a brand new turboprop that could be ripe for a partnership.
For now, Embraer has a healthy backlog, but the real challenge will be to gain additional orders and reassert the manufacturer's dominance in the regional aircraft market.
What do you make of Embraer's second-quarter deliveries? Let us know in the comments!