Embraer, Brazil’s leading aerospace company, is facing significant supply chain disruptions despite a record backlog of $21.1 billion. This backlog, a testament to the strong demand for Embraer’s aircraft, is mainly driven by its commercial aviation sector, which accounts for over $11 billion. The company’s commercial jet orders have seen a 13% increase from the previous quarter, fueled by significant orders from airlines for its regional jets.
While Embraer acknowledges the challenges posed by supply chain disruptions, it maintains that the delays it experiences are shorter compared to those faced by its larger rivals, Airbus and Boeing. This highlights the resilience of Embraer’s operations and its ability to navigate the complex global landscape.
Embraer’s impressive order book reflects its growing presence in the aviation industry. Earlier this year, American Airlines placed a substantial order for 90 Embraer E175s, with options for 43 additional aircraft. These jets, configured to accommodate 76 passengers, will be operated by American’s regional carriers.
In June, Mexicana de Aviacion, a Mexican airline, committed to purchasing 20 Embraer E2 jets, aiming to enhance affordable air travel within Mexico. This order comprises ten E190-E2 and ten E195-E2 jets, making Mexicana the first Mexican carrier to operate the E2 models.
Furthermore, Virgin Australia recently placed a firm order for eight Embraer E190-E2s, valued at approximately $300 million. This acquisition forms part of the airline’s ongoing fleet renewal program.
The global supply chain disruptions have impacted all major aircraft manufacturers, resulting in significant delays in plane deliveries. Airbus and Boeing are also facing these challenges, with Boeing experiencing additional delays due to internal issues. Earlier this year, Airbus adjusted its delivery targets for the A320neo family of jets, revising the number from 800 to 770 in June.
Airbus has also postponed its planned production rate increase to 75 A320neo aircraft per month from 2026 to 2027, citing supply chain challenges as the primary reason for the delay. Despite these difficulties, Embraer’s strong backlog and its ability to mitigate delays indicate a promising outlook for the company’s future in the aerospace industry.
