Embraer banks on regional jets to double revenues by end of decade

Embraer plans to almost double revenues from sales of its regional and business jets over the next decade but is keeping its options open on whether to launch a larger aircraft that would challenge Airbus and Boeing. Francisco Gomes Neto, CE, said the Brazilian aerospace and defence company was “very focused on selling the products we have”. “We have a very modern and competitive portfolio of products. We have the potential to be a $10bn company by the end of this decade and with our existing products,” he told the Financial Times at the Farnborough air show. Embraer, which generated $5.3bn in sales in 2023, has been ramping up production of its commercial jets since the Covid-19 pandemic hit global travel. It ended the second quarter with a $21.1bn order backlog, its highest in seven years. Shares in the group have soared more than 80% since the start of the year. The world’s third-largest civil aircraft manufacturer is the leading producer of regional jets, which are smaller than the narrow-body planes built by aerospace giants Boeing and Airbus. Its latest and largest model, the E195-E2, can carry up to 146 passengers. Embraer has in the past regularly played down any interest in breaking the duopoly by entering the competitive market for single-aisle aircraft. Industry attention over the possibility has intensified, however, amid turmoil at Boeing after the mid-air blowout of a section of one of its 737 Max aircraft in January and as Airbus struggles to boost output because of supply constraints. Gomes Neto said that “while we feel good talking about Embraer as a potential to break the duopoly . . . we don’t have any concrete plans now to launch a bigger aircraft”. However, he added, “we are always making studies in the different segments . . . in business jets, commercial and defence as well . . . We have people working on all those markets to see the opportunities we have.”<br/>