At the Paris Air Show, Brazilian aircraft manufacturer Embraer caught investors’ attention by announcing a series of new business deals. Among them, a major order for regional jets from U.S. carrier SkyWest and a defense contract with Lithuania stand out. These reports drove a 5% surge in Embraer’s shares, making it the top performer on Brazil’s Bovespa stock index, according to Reuters.
Although the start of the airshow was challenging after Polish airline LOT opted for Airbus A220s over Embraer’s E2 models, confidence was quickly restored thanks to the SkyWest deal. The U.S. aviation firm placed a firm order for 60 E175 jets, worth $3.6 billion at list prices, with an option for 50 more. Arjan Meijer, head of Embraer’s commercial aviation division, called this a “mega-deal,” emphasizing that the E175 is the backbone of regional air travel in North America.
Santander’s financial analysts viewed this move as highly positive for Embraer, significantly boosting its order backlog and confirming sustained demand for first-generation regional jets in a key market. Additionally, South Africa’s Airlink plans to lease 10 E195-E2 models via Azorra, which Itau BBA analysts believe could spur further orders.
On the defense front, Embraer secured a major success with Lithuania’s agreement to add three KC-390 military transport aircraft to its fleet. Though financial details were undisclosed, analysts predict this could encourage other European and NATO countries to purchase the model, which competes with Lockheed Martin’s C-130. Portugal, Hungary, and the Netherlands have already chosen the KC-390.
Bradesco BBI noted that NATO countries could order at least 50 new C-390s, given rising European defense spending. Embraer, the third-largest aircraft maker behind Airbus and Boeing, is leveraging strong demand for its models, reflected in its stock surge, up 30% this year after a 150% rise in 2024.
