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LATAM purchases 24 Embraer E195 E2 jets to increase Brazil's presence

Embraer, a Brazilian planemaker, secured a historic deal on its own market, as LATAM Airlines announced that it had placed a firm order of 24 E195E2 aircraft with options to purchase another 50. This resulted in a rise in the shares.

This deal represents a new order of Embraer's second generation jets that has been long awaited.

Brazil

Whose government was it?

Lobbying

The sale. LATAM, a Chilean company, will first deploy the new aircraft for its Brazilian operations. The companies announced in a statement that deliveries of the 24 firm order aircraft, valued at $2.1 billion list price, would begin in 2026. LATAM and Azul will fly Embraer E195-E2s in Latin America's biggest economy. Azul placed its last firm order in 2018.

In an interview, Embraer CEO Francisco Gomes Neto revealed the first time in an interview.

Last year, the company was in discussions with LATAM about a possible order.

Later, the carrier confirmed that it was

Consideration

It has added new smaller jets to its fleet. The company cited Embraer's E2 aircraft and Airbus' A220 as direct competitors in the regional segment, with 150 seats.

Embraer shares jumped almost 4% during the morning session in Sao Paulo. JPMorgan analysts stated that the announcement reinforced their bullish view on the planemaker as its commercial backlog is growing at a rapid pace.

Gomes Neto, Gomes's colleague at the LATAM Group, said: "We are very proud of the LATAM group for making the right choice in advancing the connectivity of the region."

LATAM's Brazilian division, which is the No.1 airline in Brazil by market share, has been looking for ways to expand its fleet due to the long delivery times of narrow-body planes from larger manufacturers Airbus and Boeing. The Brazilian unit of LATAM, the country's No.

The E195-E2s join a fleet of 362 aircraft that includes Airbus narrow bodies and Boeing wide-bodies.

Roberto Alvo, CEO of LATAM, said that the airline made its decision based on "excellent economics" and the "flexibility" of the E195E2, which allows for the opening up of new destinations.

Brazil's Government, which was

Local carriers are urged to increase their efforts

The deal to purchase Embraer aircraft was hailed as a way to strengthen the manufacturer and boost regional aviation.

It's an historic purchase. "A milestone for regional aviation," said Ports and Airports minister Silvio Costa Filho.

LATAM follows an order

landmark deal

Embraer made history earlier this month when Avelo Airlines, a budget airline in the United States, placed a firm order of 50 E195E2s. This was the first U.S. contract for the aircraft. (Reporting and editing by Brad Haynes, Mark Porter, and Fernando Cardoso)

(source: Reuters)