Embraer Makes a Good Start to 2016

MIAMI — Brazil's Embraer SA delivered 44 aircraft in the first quarter of 2016. While commercial aircraft deliveries were flat when compared to 1Q 2015, the airframer achieved a 37.5% delivery increase over the previous year, thanks to its executive jets portfolio.During this quarter, Embraer delivered 21 commercial aircraft (19 E175 and two E195 EJet family aircraft), mostly to U.S. regional carriers, in which the E175 continues gaining momentum. Just this week, Alaska Air Group subsidiary Horizon Air announced a purchasing agreement for 30 E175, plus options for 33 aircraft, valued at 2.8 billion dollars at list prices if all options are exercised. The value of the deal will be included in the Embraer's 2016 second quarter backlog.Meanwhile, business jet deliveries made during the first quarter include one Phenom 100, 11 Phenom 300, as well as five Legacy 500 and six Legacy 650 aircraft.According to the company, the highlight of the quarter was the rollout in February of its E190-E2, marking the start of a new generation of regional family aircraft from the Brazilian manufacturer. Since its launch in June 2013, the E2 has reaped 640 commitments, 267 firm orders, and 373 options and purchase rights from both airline customers and leasing companies.Embraer expects to deliver 105 to 110 commercial aircraft and 115 to 135 executive jets in 2016. The company's backlog of firm orders is valued at $21.9 billion as of March 31, down from $22.5 billion registered at the end of 2015.The company ended the last year with 101 commercial aircraft and 120 executive jets delivered. The overall number of 221 aircraft set a record for Embraer in the last five years.