In a conference with investors on Thursday, Embraer said it had around 200 commercial aircraft being negotiated with several potential customers.
Despite this, neither CEO Francisco Gomes Neto nor CFO Antonio Carlos Garcia revealed who might be interested in their commercial jets.
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Gomes Neto, however, cited China as a country from which “good news” is expected in the coming quarters.
In fact, Embraer considered an order for 20 aircraft from Chinese airlines, the announcement of which should have taken place during the visit of Brazilian President Luiz Inácio Lula da Silva to the country in April.
The backlog of commercial aircraft orders fell again in values, to US$ 8.4 billion compared to US$ 9 billion in the 4th quarter of 2021. Until March, Embraer confirmed a total of 281 aircraft pending delivery.
E2 with tight margin
Carlos Garcia was optimistic when he stated that the company expects to deliver 30 aircraft in the 2nd quarter, after a weak start to the year, with only seven commercial jets and eight business jets delivered.
The target for 2023 is 65 to 70 aircraft, a low level compared to pre-pandemic times, but much higher than 2022, when only 57 aircraft were sent to its customers.
Embraer admitted that the profit margin of the E2 family is lower than the successful E1, in part because the aircraft is still at a low production rate and with costs to be absorbed.
“We are still in a ramp-up process and therefore we will still have the opportunity to reduce production time and cost and obtain better margins in the future,” guaranteed Gomes Neto.
This year will be the first in which the E2 jets will have more deliveries than the E1, reduced to the E175 variant, very popular in the US.
Speaking of the North American aviation market, the CEO of Embraer said that there is no news about the scope clause that prevents the E175-E2 model from being sold to US regional airlines.
Regarding the arbitration process in which Embraer claims compensation from Boeing after the end of the joint venture, Francisco Gomes Neto said he expects an outcome in the first half of 2024.
Featured image: KLM Cityhopper E195-E2 (Dylan Agbagni (CC0)