Embraer reduces commercial aircraft supplies by 40 percent in third quarter
Embraer reduced the supply of commercial aircraft in the third quarter of 2018 by 40.0%, follows from the report of the Brazilian aircraft manufacturer. From July to September, the manufacturer handed over to customers 15 such machines, compared with 25 aircraft in the same period of 2017. Model E175 enjoyed the greatest demand - 13 units were transferred in total, which is 27.8% less than last year's result. The deliveries of the E190 model were reduced by more than twice, to 2 BC.
The aircraft manufacturer maintains a tendency to reduce deliveries of commercial aircraft, which is fixed since the beginning of the year. Recall that in the first quarter the number of aircraft transferred decreased by 22.2%, in the second quarter - by 20.0%. In total, from January to September 2018, Embraer delivered 57 commercial aircraft.
Despite the fact that at the Farbnoro air show, the aircraft manufacturer announced orders and agreements for almost 300 aircrafts, as of September 30, the portfolio of fixed contracts for commercial aircraft decreased by 30.3% compared to June 30, 2018 and amounted to 251 aircrafts - 103 E175, 10 E190, 6 E195, 59 190-E2 and 73 195-E2.
The number of deliveries in the business aircraft segment, on the contrary, increased compared to the third quarter of 2017 by 20.0% and amounted to 24 aircrafts. The main increase was in the segment of light aircraft (17 aircraft transferred; + 30.8%). The aircraft manufacturer also delivered 7 heavy business jets (from July to September 2017, the same number of heavy and medium-sized aircraft was transferred). Since the beginning of the year, 55 business aircraft have been delivered, including the delivery of the first Phenom 300E to the Asia-Pacific region.
The value of the aggregate portfolio of firm orders as of September 30 (including commercial and business aircraft) decreased by 21.8% compared to the second quarter of 2018 and amounted to $ 13.6 billion.
Recall that Embraer has agreed with Boeing to sell its commercial programs. By the end of 2019, a joint venture will be created, 80% owned by the American aircraft manufacturer, where Embraer intends to transfer its entire business in this segment. As a result, the regional aircraft of a Brazilian manufacturer will be built into the Boeing product line, including development, production, marketing and after-sales service.