Embraer announces record $22.9bn production backlog

Brazilian aircraft manufacturer Embraer has announced that it has an extensive production backlog worth $22.9bn.

Embraer, which is the third largest aircraft manufacturer in the world behind the more well-known companies Airbus and Boeing, made the announcement in a recent press statement.

“In the end of the second quarter of 2015, Embraer’s firm order backlog reached $22.9bn, the highest level in the Company’s history. At the end of the previous quarter, in March 2015, the firm order backlog totalled $20.4bn,” the company wrote.

Unlike Boeing and Airbus, Embraer focuses on small to mid-size passenger aircraft seating up to 130 passengers. As well as commercial aircraft, they also produce airframes for business and military clients.

The company has seen considerable success within this niche, with 60 aircraft delivered in the second quarter of 2015, an increase on the 58 aircraft it delivered over the same period last year.

It also continued to secure a large number of new orders for aircraft following the Paris Air Show earlier this year.

These included seven E190 for China’s Colorful Guizhou Airlines, eight E175 for SkyWest Airlines, which will be operated by Alaska Airlines, ten E175 for United Express and 15 E190-E2 and ten E195-E2 for Aircastle.

Among Embraer’s multi-billion dollar production backlog are the first models of the company’s E2 craft, the next generation of its popular E-Jet series. These new medium-range jets will feature improved engines with reduced fuel consumption, as well as lighter airframes.

All up, the company claims a backlog totalling of 531 aircraft orders, of which 267 are for the new E2 models. The first deliveries of these jets are not expected until 2018 at the earliest.

Despite these successes, Embraer reportedly suffered a $58.9m first quarter net loss due to higher tax costs and a weakened local currency.