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SkyWest and Lithuania deals lift Embraer to Paris Airshow

Analysts and investors welcomed the new deals announced on Wednesday by Brazilian planemaker Embraer during the Paris Airshow. These included a large regional jet order placed with SkyWest, and a military agreement signed with Lithuania.

Embraer shares climbed up to 5% after the announcements, making the company the best performer in Brazil's benchmark index Bovespa. This also highlighted positive sales momentum.

Embraer had a rough start at Le Bourget on Monday as Polish carrier LOT chose Airbus' A220 Regional Jet over Embraer's E2 Family after a fierce competition.

Hard-fought battle

for a landmark 40-airplane deal.

SkyWest, a U.S. carrier, placed a firm 60 E175 order valued at $3.6 Billion at list price. There are options to purchase 50 more.

Arjan Meijer of Embraer Commercial Aviation described the deal as a "mega-order" and added that the E175 is the "cornerstone for regional aviation in North America."

Analysts at Santander praised the "strongly positive development" as it was for Embraer, due to the significant boost in its backlog of orders and the indications that the demand for first-generation models will continue to be strong in the region.

Itau BBA also revealed that South Africa's Airlink intends to lease ten second-generation E195E2 jets. This move, Itau BBA believes, could lead to future orders from Azorra.

NATO BOOST

Lithuania announced that it has selected Embraer’s KC-390 Airlifter as its main airlifter, paving way for the purchase of three aircraft. The financial details of the deal were not revealed.

Analysts believe that the move could lead to more orders coming from European and NATO nations, including Portugal, Hungary, and

The Netherlands

The C-130, which is a competitor of Lockheed Martin’s aircraft, was also chosen.

Bradesco BBI wrote in a client note that the increase in European defense investment could lead to at least 50 additional orders for the C-390.

Embraer is the third largest plane manufacturer in the world after Airbus. Its jets are selling well, and this has created a tailwind. The company's shares are up 30% this year after a 150% increase in 2024. Reporting by Gabriel Araujo, Sao Paulo. Additional reporting by Paul Sandle, Paris; and Paula Arend Laier, Sao Paulo. Editing by Mark Potter and Margueritachoy.

(source: Reuters)