Embraer pushes back E175-E2 introduction to 2023
In a financial statement released on August 5, 2020, Embraer reported second-quarter losses and a steep drop in revenue, yet the company indicates that it remains in “a stable overall position.” However, the introduction of the E175-E2 was delayed due to the current situation in the market.
Embraer reported $198 million net loss in Q2 2020 and a 61% decline in revenue compared to the same quarter of the previous year.
Differences in the number of aircraft delivered were also evident, as in Q2 2019, 51 jets were handed over to customers compared to the mere result of 17 a year later. Executive jet sales were higher in Q2 2020, compared to the corresponding period in 2019.
Furthermore, while the development of the E175-E2 continues, the Brazilian manufacturer pushed back its introduction into 2023.
“The Company believes that the E175-E2 will still be available with more than adequate time to enter into service in the commercial aviation market to meet market demand for the jet,” reads the financial report.
Embraer attributed the reduction in aircraft deliveries to the terminated partnership with Boeing back on April 25, 2020, and the COVID-19 pandemic’s impact on the global market.
Embraer’s KC-390 military systems development for the Brazilian Air Force (FAB) was also delayed, however, the report did not indicate any timeline related to the KC-390s systems.
As of June 30, 2020, the Brazilian based aircraft manufacturer reported $1.9 billion cash in its possession and $6 billion in liquid assets. Embraer also has a cumulative backlog of 314 commercial aircraft on order, totaling to $15.4 billion.