As the third largest Commercial Aircraft manufacturer worldwide, behind Airbus and Boeing, and a driving force in Defense & Security and Business Aviation, Brazilian planemaker Embraer disclosed its earning results for the second-quarter (from April to June) of 2024 on August 8. 

According to Q2 2024 results, Embraer has registered net revenue of $1,49 Billion, up 15.6% from a year earlier and represents an increase of 67% compared to the previous quarter. The revenue increase was driven by the Commercial Aviation ($553.5 Million +17% vs the same period of 2023) as well as the Services and Support division ($403.6 Million, +19% over the Q2 2023).  In Executive Jets, Embraer saw an 11% decrease to $335.5 Million. Whereas, Defense and Security division saw the largest proportional growth +130% (from $87 to $187 Million). 

Embraer’s Q2 2024 results show strong growth for the regional jet manufacturer, with an overall backlog of $21.1 Billion, marking a seven-year high and up more than 20% annually. The Services and Support division of Embraer continue to be a key driver of the company’s growth with the backlog ending the last quarter unchanged at US$3,1 Billion. However, the backlog in Defense & Security division decreased 10% quarter-on-quarter.

Embraer’s Q2 2024 results also show 88% increase in deliveries in Q2 compared to first-quarter (Q1, from January to March) of 2024. In the April–June period, Embraer delivered 47 jets, an increase of 88% compared to the 25 aircraft delivered in the first quarter of 2024. According to Embraer, Commercial Aviation division was the highlight of the period April to June with 19 jet deliveries (around 170% more than in the first quarter) totalling $227 Million. Executive Jets division also delivered a solid performance in the April–June period with 27 aircraft (20 light and 7 medium), a 50% increase on the previous quarter, while the Defense and Security division delivered only one multi-mission airlift C-390 Millennium military transporter to the Portuguese Air Force (FAP). Embraer Defense and Security division will deliver a total of 4 KC/C-390 aircraft in 2024, 6 in 2025, 7 in 2027, and 12 in 2030. In the short term, Embraer estimates a market potential for an additional 80 to 120 KC/C-390 aircraft. Apart from PAF’s second C-390 Millennium that delivered on June 26, 2024 Defense and Security division will deliver additional KC/C-390 Millennium aircraft to the Hungarian Air Force (1x, delivery took place on September 5, 2024) and Brazilian Air Force (2x) by the end of 2024, increasing the total number of aircraft in service to 11.

A highlight in Embraer’s Commercial Aviation division was an order for 20 E2 jets from Mexico’s state-owned airline, Mexicana de Aviación. The order includes 10 E190-E2 jets and a further 10 E195-E2 jets, with deliveries scheduled to start in 2025. Other highlights include the delivery and start of operations of the first E190-E2 for Scoot, Singapore Airlines’ low-cost subsidiary. Another milestone was marked in May 2024, with the delivery of Embraer’s 1.800th E-Jet to leasing company Azorra. The aircraft will be operated by Royal Jordanian Airlines.

Spoke to Aviation Turkey during Embraer Media Day 2024, held on 18-19 June 2024 in Brazil, Embraer President and CEO Francisco Gomes Neto  underlined that since its trip cost was more than 20% lower from the big narrow-bodies (larger single-aisle aircraft), the E2 Family was a perfect solution to complement the larger single-aisle aircraft and help the airlines to open new routes to improve connectivity between small cities and hubs. “It's the best solution to offer a higher frequency of flights that passengers appreciate very much, with a higher load factor and a very attractive cost benefit and profitability for the airlines. We have now 18 customers (for the E190-E2 and the E195-E2) globally for the E2 Family and we see now the interest in these aircraft growing. We are working in a lot of sales campaigns that we hope to conclude in the next month. And again, the E2 is the best complement to larger narrow-bodies, the best example of Embraer's engineering excellence and the most efficient single-aisle aircraft,” Neto added.

By registering positive Q2 financial results, the company has also reaffirmed its outlook for 2024, which includes the delivery of 72 to 80 commercial aircraft, up from 64 last year, as well as 125 to 135 executive jets, up from 115 in 2023, and bringing in revenue of $6,0 to $6,4 Billion range, which would be far beyond compared to before COVID figure (US$5,463 Billion in 2019).

Embraer has been experiencing strong demand for its next generation single-aisle (narrow-body) E2 Family as carriers face a shortage of larger single-aisle planes from Airbus and Boeing, and has also managed to convert business jet purchase options into firm orders. In June 2024, it was reported that the world’s largest private jet flight provider NetJets, which has nearly 2.000 options for private jets, has begun converting the first five of 250 Embraer Praetor 500 options announced in 2023 to firm orders. The deliveries will start in 2025.

Spoke to Aviation Turkey during Embraer Media Day 2024, held on 18-19 June 2024 in Brazil, Embraer President and CEO Neto underlined that Embraer was confident in reaching its commercial aircraft target in 2024 and could deliver up to 90 of its E-Jets to airlines in 2025. Neto said that they “have positive sales momentum in different business units, starting with the commercial jets” and they have seen “increasing demand” for the E-Jets, either the E1s, the E175, and the E2 Family. “And also because of the constraints in the delivery of narrow-bodies. In the future, we are great opportunity, a great solution for the airlines to add capacity more quickly to their fleets,” Neto  added. Embraer has production slots available from 2026, meaning it can deliver on new jet sales before larger rivals Boeing and Airbus, the latter having sold out its production of single-aisle jets until the end of the decade. With 2.200 firm orders for the E-Jet to date (comprising 90+ airlines in 60+ countries, 1.473+ in service), Embraer projects this figure to rise to potential 10.500 aircraft by 2043; assisted in part by a number of updates announced today.

In response to the increased aircraft production and anticipated future growth, Embraer is investing in initiatives such as the development of new technologies, expansion of aeronautical services, and projects aimed at improving and expanding industrial activity. As Brazil's largest exporter of high technology, the company is well-positioned across all its operational segments: commercial aviation, business aviation, defense, and services.

Since it was founded in 1969, Embraer, the leading manufacturer of commercial jets with up to 150 seats, has delivered more than 9.000 aircraft. On average, about every 10 seconds, an aircraft manufactured by Embraer takes off somewhere worldwide, transporting over 145 million passengers a year. 

FIA24 & Embraer

As a global aerospace company headquartered in Brazil and manufactures aircraft for Commercial and Executive aviation, Defense & Security, and Agricultural customers, Embraer made a strong presence at the Farnborough International Airshow (FIA24), the most significant aviation and aerospace event of the year.

Embraer’s brand-new E-Freighter, the E190F, made its first public appearance at FIA24. Embraer launched the E-Jet freighters (E190F and E195F) in 2022 to meet the changing demands of e-commerce and modern trade, which require fast delivery and decentralized operations. The E190F E-Freighter has been certified by the National Civil Aviation Agency of Brazil (ANAC) in July 2024. The aircraft, was developed to fill a gap in the air cargo market and to replace older less efficient models. The E-Freighter is due to receive EASA and FAA certification later this year and for the Cargo Loading System shortly after. According to Embraer, E-Jets converted to freighters will have over 40% more volume capacity, three times the range of large cargo turboprops, and up to 30% lower operating costs than larger narrow-bodies. If combining capacity under the floor and main deck, the maximum structural payload is 13.500 kg for the E190F. 

Embraer’s lineup at the Farnborough International Airshow (FIA24) highlighted its leading portfolio of aircraft for both commercial aviation and defense, which included the E195-E2, the world’s most efficient and quietest narrowbody; the aforementioned E190F; the C-390 Millennium multi-mission military tactical transport; and the A-29 Super Tucano a multi-role defense aircraft. The C-390 Millennium and the E195-E2 also took part in the flight display. Powered by two Pratt & Whitney PW1900G Geared Turbofans providing up to 23.000 pounds of thrust, the E195-E2 comes in a trio of two-by-two seating configurations: three-class with 120 seats, single-class with 132 seats, or single-class with 146 seats, the latter of which has 28 inches of pitch between seat rows. A fully loaded E195-E2 has a range of 2.600 nm with a 41.000 ft ceiling, maximum cruise speed of Mach 0.82, and Maximum Take-off Weight (MTOW) of 61.500 kg (135.584 lb).

Inside the Embraer chalet (#C-105), visitors had the chance to take a closer look at multiple activities related to innovation, new technologies and the company’s roadmap to sustainable aviation, such as the Energia Family concept aircraft. Also, EVE Air Mobility presented updates on the development of its electric vertical take-off and landing vehicle (eVTOL) and the Urban Air Traffic Management Software VECTOR, including a full-size eVTOL cabin mock-up and a unique virtual reality (VR) flight experience.

Despite celebrating 9 C-390 Millennium (ordered in a joint deal between the Netherlands [5x] and Austria [4x] and under a contract signed by the Dutch Ministry of Defense during a ceremony at FIA24 on July 22, 2024) and the purchase of 6 A-29 Super Tucano by Paraguay (on July 23, 2024 Embraer announced that it has sold 6 A-29 Super Tucano aircraft to the Paraguayan Air Force [FAP]), Embraer did not announce any commercial aircraft deals during FIA24; instead the company unveiled a range of enhancements intended to improve the E-Jet’s appeal.

In a world-first for any aircraft, an Embraer-developed autonomous landing system (E2TS) will help enable an optimum takeoff and landing profile, offering an approximately 350 miles of additional range. With an anticipated entry into service date of the end of 2025, Embraer has already been offering the option to customers, citing interest in the product’s ability to “extract more value out of the ecosystem”.

Meanwhile, the E-175 will benefit from new luggage storage (facilitating one bag per passenger), mood lighting, Ka/Ku-Band satellite connectivity and enhanced avionics (including next-generation weather radar). Recaro seating will also be available as a supplier-furnished item from Q4 2024. From 2026, a cabin optimisation initiative will see an extra row of seats included; taking a single-class configuration from 13 to 14 rows, and a two-class layout from 11 to 12 rows. However, the E175-E2 is described as being “on pause,” with its primary US market preferring the E1.

Spoke to Aviation Turkey during Embraer Media Day 2024, held on 18-19 June 2024 in Brazil, Embraer President and CEO Neto underlined that as a very robust and mature product the E175-E1was the workhorse in the region of aviation in the United States. Neto also pointed out that “more than 5 million passengers” flown every month with Embraer’s E175s in airports. “At the La Guardia Airport in New York, one of four flights is performed/flown with our E175. And since the entry into service (EIS), our teams have been able to improve the fuel burn by 6.4%. We were very happy with the new and big order in March 2024 from American Airlines to buy 90 firm E175 plus 43 purchase rights. We will start deliveries in next year,” Neto added. In reply to a question about how the Embraer managed to reduce the fuel burn by 6.4% in the E175, Neto pointed out that the main difference was at the new wingtips which are really big, “like more than like 1.5 meters each side.” “So, we increase that a lot, it's a span increase and it's a big aerodynamic improvement. We had to reinforce structurally the wing because of course, the loads are bigger. But also at that time we were developing the E2s, which are very clean aerodynamically. So, we took the improvements of the E2 in terms of the air intakes, antennas and things like that. So, all the aerodynamic drag that existed. So, we took all those features of the E2 and introduced on the E1, and 6.4% improvement in fuel bun is huge.”

Notes from Embraer Media Day 2024 Event

Ahead of Farnborough International Airshow 2024 (FIA24), which was held during July 22-26, Embraer welcomed around 30 journalists from over 12 countries including; Austria, Australia, Brazil, France, Japan, Mexico, Netherlands, Türkiye, the UK, and the USA, in the city of São José dos Campos located in the state of São Paulo in Southeastern Brazil, on 18-19 June 2024 to provide information about the latest situation in military (C-390 Millennium Medium Military Transport Aircraft) and civil aviation (E2 Series narrow-body commercial jets) projects and to give clues about what new surprizes to be presented to world aviation at FIA24. 

Founded in 1969 and celebrated its 55th anniversary on August 19, 2024, the Brazilian aviation company Embraer is preparing itself for the next 50 years with the pride of providing more than 9.000 aircraft in more than 20 models for both civil and military purposes to the world aviation in the past 55 years. Focusing on efficiency and innovation is part of Embraer’s growth strategy. The company continues investing heavily on innovation which help it to optimize the investments. According to Embraer President and CEO Francisco Gomes Neto, more or less 30% to 40% of Embraer’s free cash flow, around $300 to $400 Million depending on the year is allocated for research and development studies.

Media Day in São José dos Campos kicked off with a presentation titled, “Embraer Growth Strategy” by Embraer President & CEO Francisco Gomes Neto. Speaking to assembled reporters, Neto said that: “It's my pleasure to share with you some updates on Embraer and in preparation for the Farnborough Air Show that we believe will be, I can say, maybe the best show ever for Embraer.” In his speech, Neto pointed out that with 19.000+ employees Embraer completes 55 years in a very good shape, back to 2019 levels and in 55 years Embraer completed delivery of over 9.000 aircraft to more than 2.000 customers across all the business units to more than 60 different governments and military forces. 

“We have a very comprehensive portfolio of products in other business units, commercial jets, executive jets, defense and security and more recently the E-VTOLs. All of those developments had one very important point that is our world class engineering. We have in our engineering team more than 3.700 engineering people, 1.400+ employees have master’s degrees, PhDs or post-graduate qualifications. And this team has generated more than 800 patents in 7 different countries. This team is the best when it comes to designing, certifying in manufacturing new airplanes… The foundation of our culture of excellence is Safety First and Quality Always in everything we do, from designing supply chain to manufacturing and customer support.” Neto added.

At his address talking about Embraer’s products, Neto shared the following information about Embraer’s Executive Jets: “In Executive Jets, we have a very modern portfolio of products starting with the Phenom 100EX. This new version EX was launched in Q4 of last year and is the most popular entry level aircraft in the category. The Phenom 300E is the most sold light jet in the world for 12 years in a row. The PRAETOR Family (PRAETOR 500 and PRAETOR 600) is very modern, very comfortable, technologically advanced aircraft in the market. Also gaining market share year after year.” In the last part of his speech, Embraer President and CEO Neto shared the following information about their 2050 road map and eVTOL Program under the title of Sustainability-Technology Applicability: “We are planning to enter into service with our eVTOL (“flying car”) full electric aircraft until the end of 2026. Then before 2030, we expect to certify our E2s to fly with 100% SAF and then the Energia Family members, and finally the E2 flying powered by gas turbine hydrogen (H2 Gas Turbine) after the year 2045. The EVE’s (Embraer’s subsidiary) eVTOL Project is advancing very well. We are very excited about our new product eVTOL. The eVTOL can boost even further the growth of Embraer.”

According to slide on eVTOL and Urban Air Traffic Management (UATM) Deals, that shared by Neto during his address, Embraer has 30 eVTOL customers in 13 countries and 16 UATM customers & partners in 4 continents and the total value of 2.900 Letters of Intents (LoIs) that secured so far for eVTOLs is around $14,5 Billion. “We have the eVTOL Program with the highest number of letters of intent of purchasing. We have customers everywhere in the globe with a lot of intent. We are starting investments in the industrialization and we are working now to convert these LoIs into firm orders, to guarantee the production ramp up of the eVTOL from 2026 onwards,” Neto  said.

At the Q&A Session responding a reporter’s question about late aircraft deliveries, Neto said they were also “part of the club” and added, “We are also suffering with this, with the delay to deliver the aircraft. That's why we are focusing a lot, working very hard in this production leveling that's linked to deliveries initiative, that we really want to fix this.” Neto underlined that 2024 would be still a challenging year for Embraer, even much better than 2022. “But we hope that from 2025 onwards we'll be more and more closer to delivery the aircraft on the days that agreed with the customers. Regarding the average time of delay. Say year to date, we have zero delay this year for commercial aviation. We are seeing some shifts between Q3 and Q4. But I would say we are talking everything below weeks, not much, not six months. We are part of the globe, but not too,” Neto said.

In reply to a question about how the Embraer managed to grow effectively while operating three production lines in three different locations in Brazil and how do they grow the number of engineers, Embraer President and CEO Neto said, “You know, in the past years, we have focused a lot on increasing, improving the efficiency of our plants. We believe we have a very, very good setup in this plant here, SJK (Faria Lima Plant), we build the E-Jets, assembly line of E-Jets. We have also production of harness and other components, composites for example, at Botucatu (BOT), about 4 hours by car from here, we have our structure and parts production. Fuselages that we do fuselage for the different products we have. In our GPX (Gaviao Peixoto Plant) plant, that's about 5 hours and a half from here by car, we have the production of the C-390, Super Tucano and Praetor, but we have the same production standards for all the plants. We manage the plants through only 4 KPIs (Key Performance Indicators). Safety, Quality, Delivery Cost in this sequence of priorities, safety first, quality, delivery cost. So, if you go to any of our plants, any of our stations or production line, you see boards managing these 4 KPIs in a daily basis. So again, the products are different, but the plants are dedicated to the different products. We have a hybrid assembly line. We do the E1s, E175, and the E2s in the same line, but the same production standards, same level of cleanliness, same level of organization, same level of continuous improvement tools, exactly the same. If you go to our another plant, we have is in Melbourne, US, where we assembled the PHENOMS and the delivery center for all the Executive Jets. Also, the same standards that we have here. The same standard we have for the C-390 we have for the Phenoms in Melbourne and also in Portugal, where we do, we have MROs in production of components or even the MROs of Embraer. If you go to any of our MROs in Brazil, in the US and other parts, you find the same standards, the same 4 KPIs, the same level of organization, continuous improvement, tools management, etcetera. So, this is the way we do believe that again, by being more efficient, innovative, we can make a difference in the market. So again, we are very proud of our plants. And we believe we have the best-in-class production plants in the aviation industry. Human Resource has not been a problem for us in Brazil. I think we have a very good level of universities for engineers in Brazil. And, also at Embraer. As we are a company focused a lot on education. We have a program we call PE, is a program of specialization in engineering. So, every year we hire between 80-100 engineers from the best engineering schools in Brazil. So, we send them for one year and a half MBA. In agreement with ITA (Technological Institute of Aeronautics), it is the best aeronautical engineering school in Brazil. So, we pay 100% for the MBA. We give a salary for those guys in that program. And after a year and a half, we hired those guys for our teams of engineers. So again, because of that, we have this strong team of engineers that I said, world class engineers. And, also for other specialties in the organization, matter of fact, engineers, even sales and other areas. We were not having difficulties to find good professionals in the organization.”

To complement Neto, Andreza Alberto, Vice President of Human Resources, also underlined that even though Embraer has multiple production lines, there is a specialization, which makes it more efficient and an integrated production plan. “So, this site here, SJK, is commercial aviation special. So, if we need to grow commercially, this will happen here. The KC-390 is in GPX, so if you need to grow, the growth will be there. Melbourne is PHENOM special. So, even though we have multiple production lines, there is a specialization. Which makes it more efficient… We also have an integrated production plan that integrates all the parts and the plants of the production from the primary part of the final assembly in each location. It's all integrated. It's a very robust plan connected to sales and the strategy of the company. So, we can assure that there is an alignment of all the production lines”