The Brazilian aircraft manufacturer, Embraer announced that its E175-E2 would be delayed for launch until 2023. Along with the announcement, Embraer also announced its Quarter 2 earnings.
In the 2nd Quarter of 2020, Embraer delivered four commercial jets and 13 business jets. The manufacturer reported a net loss of $198.8 million dollars. The manufacturer's revenue was reported at $537.2 million. Meanwhile, its earnings before tax and interest was at $140.5 million dollars.
However, the carrier has posted strong liquidity with $2 billion dollars in cash and its debt maturities starting in 2022 and onwards.
Embraer will delay its E175-E2 previously scheduled for launch in 2021. However, the first delivery of the aircraft has been delayed to 2023 under a "prolonged" timeline for launch. Embraer cites that 2023 will be a better period of time to launch the aircraft. Additionally, it believes that in 2023, the aircraft will play a large role in the aviation industry. The aircraft operated its first flight in December of 2019.
Currently, there are no orders for the Embraer E175-E2. Previously, the aircraft had 100 orders from Skywest. However, there were scope issues from North American pilot unions rendering the aircraft not being able to fly.
Embraer's CEO and President of Commercial Aviation, Arjan Meijer believes that the line of E-Jets that Embraer has will play a large role in the recovery of the aviation industry. He states, "Smaller capacity airplanes have often led recovery efforts, helping airlines to manage their cash flow better, and restore network connectivity."
The Embraer E175-E2 touts itself as a better version of its predecessor, the Embraer E175. The E175-E2 can offer 90 seats in a single-class configuration and 80 seats in a three-class configuration while a regular Embraer E175 can offer 75 seats. Additionally, the Embraer E175-E2 is 16% more fuel-efficient. Additionally, the aircraft can travel longer with less maintenance. However, the Embraer E175-E2 offers 200 nm less range than its predecessor.
The Embraer E175-E2 is part of a series of new generation Embraer commercial aircraft known as the E2. Other variants include the E190-E2 and E195-E2 with the E195-E2 receiving 148 orders and E190-E2 receiving 25 orders. The most orders for the aircraft have come from Azul with 51 orders for the E195-E2 and Aercap, an aircraft lessor with 45 orders for the E195-E2 and 5 orders for the E190-E2.
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