Embraer's gigantic contract was worth around US$7 billion with American Airlines to supply E175 aircraft
According to the CNN Brasil website, Embraer has just close a million-dollar contract with American Airlines, which could exceed US$7 billion. The North American airline placed a firm order for 90 E175 model planes from the Brazilian manufacturer, with a list price of around US$55 million each. In addition, the contract provides purchase rights for another 43 units of the same model.
Before the contract is announced, Embraer shares operated at a slight increase of less than 1%, however, jumped to more than 3% after the order was announced. At 13:33 pm, the stock was losing steam, showing an increase of 1,6%, at R$26,30 reais.
American Airlines plans to retire fleet of regional aircraft
American Airlines intends to retire its entire aircraft fleet 50-seat, single-class regionals by the end of the decade. To this end, in addition to the models ordered from Embraer, the company will also purchase 85 Airbus A321neo jets and 85 Boeing 737 MAX 10, totaling an order of 260 aircraft, with options for a further 193 planes.
Contract details and impact on Embraer's portfolio
Embraer stated that the aircraft included in American Airlines' firm order will be included in the company's backlog for the first quarter of this year. The planes will be configured with two classes and capacity for 76 seats each. Since 2013, Embraer has sold 837 E175 aircraft, including the 90 ordered by American Airlines. The Brazilian company has an 88% share in the segment.
This contract represents a significant milestone for Embraer, consolidating its position in the aerospace and reinforcing its global presence. The partnership with American Airlines also highlights the North American company's confidence in the quality and efficiency of the Brazilian manufacturer's aircraft.
The giants: Embraer and American Airlines
Embraer is a leading Brazilian company in the manufacture of commercial, executive and military aircraft, founded in 1969. Headquartered in São José dos Campos, São Paulo, the company is internationally recognized for the quality and innovation of its products.
American Airlines, in turn, is one of the largest airlines in the world, headquartered in Fort Worth, Texas. Founded in 1926, the company operates an extensive network of domestic flights and international, serving millions of passengers annually.
The million-dollar contract between Embraer and American Airlines represents an important milestone in the history of both companies. For Embraer, the agreement reinforces its position in the commercial aviation market, guaranteeing a large order for E175 aircraft. For American Airlines, the purchase of these modern and efficient aircraft represents a strategic investment to expand and renew its fleet, offering passengers a more comfortable and safe travel experience.
