Embraer Sees Opportunities Amid Airbus and Boeing Backlog Nightmare

Embraer's E2 family of aircraft is gaining traction as airlines face long waits for larger jets, according to CEO Francisco Gomes Neto. The backlog for bigger narrowbody aircraft has created opportunities for Embraer, which offers more agile options.

The delivery lead times for larger single-aisle planes have grown significantly, forcing airlines to wait several years for new aircraft. This situation is being fueled by the large order backlogs accumulated by Airbus and Boeing.

According to Gomes Neto, this situation is not only due to the high demand but also because of a better understanding among airlines of how smaller narrowbody aircraft can fit into their fleets. As a result, Embraer sees a lot of opportunities for its E2s, with new orders in the future.

As of July, Airbus had 7,574 outstanding orders for the A320neo family from 12,272 firm orders. Boeing faced a similar situation at the end of June, with 4,846 unfilled orders across the 737-7, 737-8, and other variants.

The opportunity described by Gomes Neto does not mean that an E195-E2 can simply replace an A320neo or 737 MAX in an airline's fleet plan. The Embraer jet carries fewer passengers and has less range than the larger Airbus and Boeing narrowbodies.