Friday, August 30, 2024 Embraer, Brazil’s aerospace leader, faces supply-chain disruptions as its backlog climbs to $21.1 billion, highlighting ongoing challenges in aircraft delivery. Similar to other leading aircraft manufacturers, Brazil’s Embraer has encountered challenges with global supply-chain disruptions, impacting its delivery timelines.
A senior executive at the company recently admitted to these issues but noted that the delays experienced are still notably shorter compared to those faced by some of Embraer’s larger rivals. Embraer, known for producing smaller commercial aircraft compared to Airbus and Boeing, is currently grappling with a substantial backlog of orders. Earlier this year, its backlog surged to an impressive $21.
1 billion, with just over $11 billion attributed to its commercial aviation sector. This represents a 13% increase from the previous quarter, driven by significant orders from airlines for its regional jets. Additionally, the company has seen consistent growth in its private jet backlog.
This year, Embraer has secured several notable orders for its commercial jets. In March, American Airlines placed a significant order for 90 Embraer E175s, with options for 43 additional aircraft. These jets will be utilized by American’s regional carriers and will feature the airline’s standard dual-class configuration, accommodating 76 passengers.
In June, Mexicana de Aviacion committed to 20 Embraer E2 jets, aimed at enhancing affordable air travel within Mexico and stimulating demand. The order consists of ten E190-E2 and ten E195-E2 jets, making Mexicana the first Mexican carrier to operate the E2 models. Earlier this month, Virgin Australia placed a firm order for eight Embraer E190-E2s, valued at approximately $300 million.
This latest acquisition is part of the airline’s ongoing fleet renewal program. Global supply-chain disruptions have affected all major aircraft manufacturers, causing significant delays in plane deliveries. This challenge has impacted both Airbus and Boeing, with Boeing also facing additional delays due to internal issues.
Earlier this year, Airbus adjusted its delivery targets for the A320neo family of jets. Originally slated to deliver 800 planes in 2024, the company revised this number to 770 in June. Additionally, Airbus has postponed its planned production rate increase to 75 A320neo aircraft per month from 2026 to 2027, attributing the delay primarily to supply chain challenges.
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