Summary
- Embraer is forecasting up to 70 commercial aircraft deliveries this year, with 65 being a more realistic estimate.
- Deliveries of commercial aircraft have increased by 50% compared to the same period last year.
- While Embraer has seen success in executive aviation, supply chain limitations have resulted in a pricey backlog.
Brazilian aircraft manufacturer Embraer is forecasting up to 70 commercial aircraft to be delivered this year. It comes as the planemaker increased its deliveries in the third quarter by 30%, with 15 aircraft being commercial regional jets.
Embraer closed Q3 with a significant commercial aircraft backlog but has been improving slowly. Deliveries compared to the same period last year have reportedly increased by 50%.
“More likely in the 65”
While the manufacturer’s 2023 outlook consists of 65-70 commercial aircraft deliveries, Embraer’s Executive Vice President & CFO Antonio Carlos Garcia said 65 is a more realistic forecast.
“We place our guidance for deliveries in commercial aviation from 65 to 70. Today, we see more likely in the 65.”
Photo: Embraer
Embraer has delivered more planes this year, with 39 aircraft year-to-date (YTD). 27 jets were delivered in YTD 2022. Six planes were delivered in Q12022, which was one less than Q1 this year. In the second quarter, 17 aircraft were delivered this year, up from the 11 delivered during the same period last year. Last year during Q3, 10 planes were delivered compared to 15 last quarter, representing a 50% increase. Six planes were E175 regional jets, while nine were the planemaker’s newer and larger E195-E2 aircraft.
“We are consistent, growing, and improve our performance,” Garcia mentioned.
Executive aviation deliveries
The manufacturer has been more successful on the executive aviation scene, with 66 planes delivered YTD over the 52 last year. Its executive jets include the Phenom 100, Phenom 300, Praetor 500, and Praetor 600. Last quarter, 28 aircraft were delivered compared to the 23 delivered during the same period in 2022. Delivery numbers were slightly better in Q2 with 30 jets, significantly higher than 23 during Q2 last year. Eight executive jets were delivered during Q1 this year, equivalent to the amount during the same period the year prior.
Photo: Embraer
So far, there have been a total of 105 Embraer aircraft delivered in 2023. With 65 commercial aircraft deliveries projected, the manufacturer will have completed 26 additional deliveries by year’s end.
Supply chain limitations
However, challenges positioned the company to finish last quarter with a firm order backlog of nearly $18 billion, representing a $500 million increase from Q2. The amount was Embrarer’s highest level backlog in one year. Garcia blamed supply chain limitations, saying the company’s order book was much higher than it could produce. Despite less revenue, the executive highlighted the planemaker’s performance this year.
“Even with less revenue, we were able to improve profitability,” Garcia said. “We are seeing a nice momentum to even increase further this backlog. We are selling more and delivering more.”
More E175 deliveries in the US
Among the Q3 backlog is a significant order from US-based regional airline SkyWest. The carrier will receive 19 new E175 jets operating for United Airlines’ regional brand, United Express, beginning next year.
American Airlines’ wholly-owned subsidiary, Envoy Air, will also have new aircraft join its all-Embraer fleet. Four new jets, included in Embraer’s Q4 backlog, are expected to be delivered in 2024, growing Envoy’s fleet to over 150 aircraft by the end of the year.