MIAMI Brazil’s Embraer SA made a net loss of $99.4 million in the second quarter, largely attributed to softness in the executive jets market.

In the second quarter of 2016, Embraer delivered 52 aircraft—26 commercial and 26 executive aircraft,— compared to a total of 60 aircraft during the same period in 2015. While the commercial aircraft delivery rate is almost flat, the airframer experienced a 26.9% decline in the deliveries of business jets.

“Business conditions in the executive jets industry have proven to be more difficult than expected thus far in 2016, with continued pressure on new jet sales from high levels of used jet inventories and a highly
competitive environment. In response, the Company has adopted a more cautious approach to 2016
executive jet delivery targets, now expecting 70 – 80 light jets and 35 – 45 large jets.” Embraer cited in a report.

According to the company, one the major highlights during the second quarter of 2016 has been the first flight of the E190-E2. The flight took place on May 23, just three months after the rollout of the airliner in late February, and before the date originally scheduled.

The maturity of the E190-E2 program allowed Embraer to present the aircraft for the first time in the Farnborough Airshow. During the show, Embraer announced new orders for the E2 family aircraft, with six E195-E2 for Arkia Israel Airlines, and five E190-E2s for Indonesian regional airline Kalstar Aviation.

Also, Embraer scored a major order in April, when Horizon Air placed a firm order for 30 E175 plus options for another 33 aircraft. The value of the contract is US$ 2.8 billion, based on current list prices,
if all the options are exercised. The deliveries will start in the second quarter of 2017 and the aircraft will fly exclusively for Alaska Airlines.

After the revised numbers, Embraer expects to deliver between 105 and 110 commercial aircraft, and 115 to 135 executive jets in 2016. As of March 31, the airframer’s backlog is valued at $21.9 billion, down from $22.5 billion registered at the end of 2015.

Last year, Embraer delivered 101 commercial aircraft and 120 executive jets, a record for the company in the last five years.