Embraer, the Brazilian aerospace manufacturer, has reported a significant increase in deliveries and a substantial rise in its order backlog for the second quarter of 2024. The company delivered 47 aircraft during this period, marking an 88% increase compared to the previous year, and reaffirmed its full-year outlook despite ongoing aerospace industry supply chain issues.
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The deliveries comprised 19 commercial jets and 27 executive jets, along with one C-390 Millennium defense aircraft. This increase in deliveries reflects the growing demand for Embraer's aircraft, particularly its next-generation E2 jets, as carriers face a shortage of larger single-aisle planes from Airbus and Boeing. Embraer's firm order backlog reached $21.1 billion at the end of June 2024, the highest in seven years. This backlog represents a more than 20% increase from the previous year, indicating strong sales and a positive outlook for the company.
The company plans to deliver between 72 and 80 commercial aircraft this year, up from 64 last year, and between 125 and 135 business jets, up from 115 in 2023. Embraer's Chief Executive, Francisco Gomes Neto, expressed confidence in reaching these targets and potentially delivering up to 90 of its E-Jets to airlines next year. Embraer has been experiencing strong demand for its E2 jets and has managed to convert business jet purchase options into firm orders. The company also secured a significant order for 20 E2 jets from Mexicana de Aviación and saw NetJets convert options for up to 250 Praetor 500 executive jets into firm orders.
The increase in deliveries and backlog comes as Embraer has production slots available from 2026, allowing it to deliver on new jet sales before Boeing and Airbus, the latter having sold out its production of single-aisle jets until the end of the decade. Overall, Embraer's performance in the second quarter of 2024 demonstrates the company's resilience and growth potential in the face of industry challenges. With a robust order backlog and a strong delivery pipeline, Embraer is well-positioned to capitalize on the growing demand for its aircraft in the coming years.