MIAMI – Embraer announced its second quarter results today, offering delays to the E175-E2 program.
The Brazilian manufacturer says that it fully intends to continue work on the plane, just on a revised timeline.
Embraer believes that the E175-E2 will play an important role in the industry once demand for new aircraft returns post-pandemic.
Strong Demand Return Expected
Despite the effects of the pandemic on the industry, Embraer has not had a single order canceled.
CEO and President of the commercial division Arjan Meijer believes that the E-Jet family of aircraft will be in a prime position to help airlines recover.
“Smaller capacity airplanes have often led recovery efforts, helping airlines to manage their cash flow better, and restore network connectivity”
Business travel is the last thing to recover currently.
Because of this, airlines are hoping people will begin to book leisure travel again closer to home. The E175-E2 would be a prime aircraft for that type of operation.
With the delays, Embraer will still offer the industry-leading standard E175 aircraft to new and existing customers.
Delivering four commercial jets and 13 executive jets, numbers still remain low.
With adjusted losses of $120.4 million, this represented a dropped margin of 22.4% compared to the same period last year.
The manufacturer were keen to note that having finished the quarter with total cash of $2bn, liquidity remains solid.
Embraer also suspended its financial and deliveries guidance due to the ongoing pandemic, so is unclear when next deliveries may occur at this time.
It remains clear that going forward, Embraer has a lot of work to do, but it is hopeful it will see the light will at the end of the tunnel.
Featured image: Embraer E175-E2. Photo: Embraer