Embraer secures a deal with American Airlines valued at over USD 7 billion

Brazilian aircraft manufacturer Embraer has clinched a massive deal with American Airlines, securing firm orders for 90 E175s with 43 additional jets in options.

Sao Paolo-based aircraft manufacturer Embraer has secured an order for 133 aircraft from American Airlines to cater to the growing domestic demand in the United States.

In a press statement, Embraer says that the deal was worth over USD 7 billion and comprises firm orders for 90 E175 aircraft. It adds that the deal is set to bolster Embraer’s 1Q24 backlog. The aircraft manufacturer says that the E175 has garnered immense popularity in the region, with 837 aircraft sold, commanding an impressive 88 pc market share since 2013.

Emphasising its strategic focus, American Airlines aims to enhance connectivity by incorporating larger dual-class regional aircraft into its fleet. This strategic move is anticipated to fortify links between smaller markets and the global network. As part of this transition, American plans to retire all 50-seat single-class regional jets by the end of the decade, while concurrently sustaining service to small and medium-sized markets through the deployment of larger regional jets. Ultimately, dual-class regional jets are slated to dominate American’s regional fleet upon the successful completion of the incoming Embraer E175 deliveries.

“Over the past decade, we have invested heavily to modernise and simplify our fleet, which is the largest and youngest among US network carriers. These orders will continue to fuel our fleet with newer, more efficient aircraft so we can continue to deliver the best network and record-setting operational reliability for our customers,” says American’s CEO Robert Isom.

“The E175 is truly the backbone of the US aviation network, connecting all corners of the country. One of the world’s most successful aircraft programmes, the E175 was upgraded with a series of modifications that improved fuel burn by 6.5 pc. This modern, comfortable, reliable, and efficient aircraft continues to deliver the connectivity the US depends on day after day. This represents America’s largest-ever single order of E175s, and we thank American Airlines for its continued trust in our products and people,” says Arjan Meijer, President and CEO of Embraer Commercial Aviation of Embraer.