Key facts
- Embraer secured an order for 15 E195-E2 aircraft from lessor Azorra.
- The deal includes purchase rights for an additional 15 aircraft.
- Azorra's total firm orders for Embraer jets now stand at 54.
- The order pushes total bookings for the E2 program beyond 500 aircraft.
- Embraer shares rose approximately 5% following the announcement.
Brazilian aircraft manufacturer Embraer announced on Friday that it has secured an order for 15 E195-E2 aircraft from lessor Azorra. This deal, which includes purchase rights for an additional 15 jets, brings Azorra's total firm orders for Embraer aircraft to 54. The transaction marks the third increase to Azorra's original 2021 order and pushes the total bookings for Embraer's E2 program beyond 500 aircraft. Analysts from JPMorgan view the increased demand from lessors as a validation of the E2's success among airlines, noting that the U.S.-Israeli war against Iran has not affected backlog growth or airline demand for Embraer's aircraft. More than 200 E2 jets have already been delivered to 24 airlines. Analysts at Santander estimated that Azorra's order, excluding purchase options, could add approximately $500 million to Embraer's backlog, representing about a 2% increase to its first-quarter consolidated backlog. Embraer shares rose about 5% following the news, while the benchmark Bovespa stock index fell 0.2%. The deal will be reflected in Embraer's second-quarter results and backlog.