Embraer lags in orders at Paris Airshow, but longer-term recovery seen

Investors were left disappointed by weaker-than-expected order numbers for Brazil’s Embraer at the world’s largest airshow last week, though some analysts were heartened by a bid from China and interest in Embraer’s electric aircraft unit. The world’s third-largest aircraft maker after Airbus and Boeing, Embraer bagged 13 fresh orders for commercial jets at the Paris Airshow, falling short of market estimates and previous years’ levels. That led shares in the company to fall roughly 18% in a week, reversing the 11% gain realized in the days ahead of the show, when market players seemed excited by the prospects of new deals. The 13 new orders compared with 74 secured at Le Bourget in 2019 and 28 in Farnborough last year. They also lagged some upbeat market forecasts, including expectations by JPMorgan analysts for at least 30 orders. The US bank said in a note to clients on Tuesday that it hosted Embraer for a webinar and the company acknowledged the low number of orders announced, but said it was in line with its strategy to preserve margins and profitability. “Embraer continues to hold talks with several airlines, both in the US and abroad, and expects to announce more new orders in the midterm,” JPMorgan said as it reiterated its “overweight” rating on the firm. In Paris, investors were especially disappointed by the lack of orders from the booming Indian airline market, which handled an all-time-high 500-plane transaction to Airbus and new orders to Boeing.<br/>