Embraer’s CFO Says 1-2 Month Delivery Delay Is Shorter Than Larger Competitors

Like all major aircraft manufacturers, Brazil’s Embraer has also been impacted by global supply-chain issues, which have affected its delivery schedule. A top executive of the plane maker recently acknowledged the problem but added that the delay is still significantly less than some of Embraer’s bigger competitors.

Embraer delivery delays are shorter than competitors

In a recent interaction with reporters, Embraer’s Chief Financial Officer Antonio Carlos Garcia said that the company currently has an aircraft delivery delay of about one to two months. Like its competitors around the world, Embraer has also faced issues with an unstable global supply chain, particularly impacting the production of airplane engines.

Photo: Embraer

However, Garcia said that

Embraer

has so far avoided having excessive delays, unlike Boeing and Airbus. He said that the company only makes such deals with its clients that it can fulfill. Reuters quotes him as saying,

“We only commit to our clients when we can deliver. So there can be a delay, but one to two months maximum this year. While for Boeing and Airbus it may top a year, depending on the client.”

Huge backlog

Embraer, which makes smaller commercial aircraft than what Airbus and Boeing produce, currently sits on a huge backlog of orders. Earlier this year, it reached a massive backlog worth $21.1 billion. Of this, a little over $11 billion came from its commercial aviation unit.

The plane manufacturer said that it was a 13% increase over the previous quarter, fueled by massive airline orders for its regional jets. The carrier has also been witnessing a steady growth in its private jet backlog.

Photo: Embraer

Embraer has bagged some significant orders for its commercial jets this year. In March,

American Airlines announced a big order

that also included 90 Embraer E175s, with purchase rights for 43 additional jets. These planes will be operated by American’s wholly-owned regional carriers and will come in the airline’s standard dual-class configuration to carry 76 passengers.

In June, Mexicana de Aviacion ordered 20 Embraer E2 jets to provide affordable air transport within Mexico and create demand. The order included ten E190-E2 and ten E195-E2 jets and will make Mexicana the first carrier in Mexico to operate the E2 aircraft.

Another order came earlier this month when Virgin Australia placed a firm order for eight Embraer E190-E2, with a price tag of around $300 million. The latest order is part of the carrier’s fleet renewal program.

Supply chain issues

Global supply-chain issues have plagued all major aircraft manufacturers and significantly impacted plane deliveries. They have affected both Airbus and Boeing (although many of Boeing’s delays are also because of its own internal issues).

Photo: Coby Wayne | Shutterstock

Earlier this year,

Airbus revised its delivery targets for the A320neo family of jets

. The plane maker had said that it would deliver 800 planes in 2024 but brought that figure down to 770 in June. It also moved its planned production rate ramp-up to 75 Airbus A320neo family aircraft per month from 2026 to 2027, citing supply chain issues as the main reason.