By Brazil Stock Guide – President Luiz Inácio Lula da Silva praised LATAM Airlines Group (NYSE: LTM; SSE: LTM) after the carrier announced a deal worth up to $2.1 billion (R$11.4 billion) with Embraer (NYSE: ERJ; B3: EMBR3) for as many as 74 E195-E2 jets. Posting on X, Lula called Embraer a “powerhouse of national engineering” and said the order “consolidates the company as one of the world’s largest aircraft manufacturers and strengthens Brazil’s industry and aviation sector.”
The order includes 24 firm deliveries and 50 purchase options, marking the first time Embraer aircraft will enter LATAM’s 362-plane fleet, currently composed of Airbus and Boeing models. Rival Gol will remain the only major Brazilian carrier without Embraer planes. Deliveries will start in the second half of 2026, initially for LATAM Brasil.
“Today is a historic moment. With a more versatile fleet, we will connect Brazil’s continental dimensions with greater efficiency and sustainability. It is the right and courageous decision by LATAM. I am also very happy, as a proud Brazilian, to support a company from my country that I deeply admire,” said Jerome Cadier, CEO of LATAM Airlines Brasil.
Government backs Embraer push
Ports and Airports Minister Silvio Costa Filho also praised the deal, citing more than R$10 billion in investments and about 2,000 direct jobs. Vice President and Industry Minister Geraldo Alckmin called it a milestone for Brazilian aviation and for the country’s industrial base. The government has long encouraged airlines to add Embraer jets to their fleets — until now, Azul was the only major user.
Itaú BBA projects record backlog
The LATAM order follows a firm purchase of 50 E195-E2s by U.S. carrier Avelo on September 10, with rights for 50 more. According to Itaú BBA, the two deals could lift Embraer’s backlog to a record $31 billion in the third quarter of 2025.
“LATAM already operated Airbus and Boeing jets, so choosing Embraer underscores the competitiveness of its product,” said Itaú BBA analyst Daniel Gasparete, noting the stock is up about 53% this year. The bank continues to rank Embraer among its top picks
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