SAO PAULO (Reuters) – Brazilian planemaker Embraer said on Wednesday that Luxembourg carrier Luxair has placed a firm order for four E195-E2 aircraft, while also securing delivery positions for five more.
That includes two options and three purchase rights for more aircraft, Embraer said in a statement, adding that the first plane is scheduled to be delivered in the fourth quarter of 2025.
The move marks a significant fleet shift for Luxair, which currently flies only Boeing 737 jets and De Havilland turboprops. It had in the past operated Embraer’s older ERJ-145 and Emb-120 aircraft.
“The E195-E2 is a great fit for Luxair and our passengers,” said the carrier’s chief executive, Gilles Feith, adding that the plane would provide “needed flexibility in our network”.
The companies did not reveal price details but analysts at JPMorgan estimated Luxair’s order to be at around $340 million excluding options, forecasting Embraer’s backlog to currently stand at $18.6 billion.
“We view today’s announcement as positive for Embraer as the company’s backlog continues to grow and book-to-bill is approaching 1.0x, easing the commercial concerns on E2 demand,” the analysts wrote in a note to clients.
Later on Wednesday, Argentine airline Aerolineas Argentinas said it will replace its fleet of Embraer’s 190 jets with 12 new E195-E2 aircraft, with deliveries starting next year and ending in 2026.
It was not clear whether Argentina has placed a firm order for the jets yet.
Brazil-traded shares in Embraer were up 0.5% in mid-afternoon trading, outperforming the country’s benchmark stock index Bovespa, which was near flat.
The world’s third-largest planemaker after Airbus and Boeing is confident it will meet its outlook for aircraft deliveries in 2023, seen growing by about a quarter, and expects to be able to maintain that pace next year.
(Reporting by Gabriel Araujo, Editing by Louise Heavens, Steven Grattan and David Gregorio)
