By Brazil Stock Guide – Embraer SA (EMBR3.SA) expects to return to producing 100 commercial aircraft a year by 2028, Chief Executive Officer Francisco Gomes Neto told Reuters, noting that supply-chain disruptions will likely delay the goal until then.
The world’s third-largest planemaker has been steadily increasing deliveries since 2021, after the pandemic battered the industry. Embraer projects 77 to 85 commercial jet deliveries in 2025, compared with 73 last year. The company last reached the 100-plane milestone in 2017.
“2026 will still be a more challenging year for commercial jet production,” Gomes Neto said. “But from 2027, we expect to resume our strong growth plan, and by 2028 we should already be reaching 100 commercial planes a year.”
Supply Chain Bottlenecks
Embraer has faced repeated supply-chain hurdles, including engine shortages for its new-generation E2 jets, fuselage part delays from Europe, and constraints on engines for its first-generation E1 line. “The delivery range we’ve given the market has allowed us to meet promises despite all these supply-chain difficulties,” Gomes Neto said.
The executive stressed that demand is not the problem. “We have orders to deliver, it’s not a sales issue. Our backlog is strong, with production slots nearly sold out through 2026 and 2027, and partially into 2028. The real challenge is delivering the planes.”
Order Momentum
The comments came after Embraer announced a firm order of 50 E195-E2 aircraft from US carrier Avelo Airlines, the first deal for the E2 in the US market. The Brazilian manufacturer also logged recent orders from All Nippon Airways (9202.T), Scandinavian Airlines SAS (SAS.ST), and US regional carrier SkyWest (SKYW).
More E2 sales could materialize this year, with multiple campaigns ongoing, Gomes Neto added. By contrast, no new sales of the E1 are expected in 2025, as the model caters almost exclusively to the North American market.
No US E2 Factory for Now
Despite Avelo’s order and the 10% US import tariff on Brazilian-built aircraft, Embraer has no plans to establish a commercial jet assembly line in the US. “Creating a new line requires heavy investment, which would lead to huge depreciation and make the product less competitive,” Gomes Neto said.
He left the door open to a change in strategy if demand surged significantly. “If we sell thousands of planes, with orders in the hundreds, then yes — a second line could be near the biggest buyers. But that’s not the case right now.”
Embraer produces both generations of its commercial jets on a hybrid line in São José dos Campos, Brazil. It also assembles some executive jets in Florida and has proposed a $500 million US facility to build its C-390 military transport aircraft if the Pentagon opts to acquire it.
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