Embraer deliveries rose 13% in 2023 and its backlog reached $18.7Bn, a $1.2Bn growth.
The OEM delivered 75 aircraft in 4Q23; 49 executive jets (30 light and 19 medium), 25 commercial jets and 1 military C-390 jet. For the year Embraer delivered 181 aircraft, +13% compared to 2022. like the other OEMs, Embraer faces supply chain delays which have affected 2023 deliveries.
In terms of backlog, the company offered this chart. The big item here is that this backlog is at its highest level since 1Q18
The backlog could be impacted quickly in the military segment because Embraer is in the running for several campaigns with its C-390, which had a good 2023. The commercial segment could also see a jump because of the OEMs, Embraer has the best capacity. This means that in a campaign it has an advantage its competitors don’t and it could be a crucial advantage – faster deliveries are a significant attraction. An example is Canada’s Porter Airlines, it had an order for 50 and then added a further 25.
Given the slowdown in US regional airline activity the focus needs to move to the larger E2 models. In terms of the US regional market, the E175 is likely to find favor replacing CRJs as these are retired. But the ongoing pilot shortage in the regional market hampers opportunities.
Finally, with some early E190s being retirement and being moved to the P2F program, we might see more E2 orders.
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