Embraer’s executive jet deliveries continue to strengthen this year, with third-quarter shipments reaching their highest levels since 2009. The Brazilian airframer’s business jet deliveries eclipsed commercial deliveries in the third quarter, but new commercial orders helped increase its backlog, which is approaching prior levels again.
Embraer delivered 25 business jets in the quarter, a total driven by a jump in Phenom 300 deliveries. The company handed over 15 Phenom 300s in the quarter, only the second time deliveries have reached that level since the model entered service in late 2009. (Embraer had shipped 15 Phenom 300s in fourth-quarter 2010.) The Phenom 300 program has benefited from orders placed by three major fractional ownership programs—NetJets, Flight Options and Executive AirShare.
Deliveries of the Phenom 100 remain slower, with six delivered in the third quarter. This is up by one unit over third-quarter 2012, but down over prior third quarter levels. Embraer also shipped four Legacy 650s, matching the total number of Legacy 600/650s delivered in the first three quarters of 2012 combined. Company executives have been encouraged by sales of the Legacy 650, a longer-range version of the 600 that entered the market in 2011.
For the year, Embraer has handed over 66 executive jets, almost 50% more than the 46 delivered through the first three quarters of 2012. Phenoms (100 and 300) have accounted for 52 of those deliveries, compared with the 40 during the same period in 2012.
Embraer also delivered 19 of its commercial jets, down almost one-third from the 27 delivered in third-quarter 2012. This year’s third-quarter shipments included nine each of its Embraer 175 and 190, and one each of the 170 and 195. For the year, deliveries are lagging significantly, down from 83 through the first three quarters of 2012 to 58 this year.
Deliveries this year are reflecting slower commercial business in the past couple of years, a trend that has put a significant dent in the manufacturer’s backlog. Embraer’s backlog had reached $19 billion in 2009, but that dipped to $12.4 billion last year on the slow commercial aviation business along with business jet cancellations.
But the market has improved for Embraer’s commercial aviation models this year, with an order from SkyWest for up to 200 (including 100 firm) of the company’s newly launched E175-E2 airliner. In the third quarter, Embraer finalized an agreement with the International Lease Finance Corporation for 50 E-Jet E2 aircraft—25 E190-E2s and 25 E195-E2s. As a result, the company’s backlog continues to rebound, reaching $17.8 billion, up from $17.1 billion at the end of the second quarter.