Brazil’s Embraer gets fresh E195-E2 orders from Oman’s SalamAir

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Stock Markets 1 hour ago (Oct 06, 2022 02:20PM ET)

Brazil © Reuters. An Embraer logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse

SAO PAULO (Reuters) -Embraer SA said on Thursday that Oman’s low-cost carrier SalamAir has signed a firm order for six E195-E2 jets, with options for a further six aircraft, an announcement that sent shares in the Brazilian planemaker higher.

The deal was valued at $934.6 million with all options exercised and will be added to Embraer’s third-quarter backlog, the company said in a statement.

Deliveries are expected to begin in late 2023.

The chief executive of Embraer Commercial Aviation, Arjan Meijer, said the order highlights the company’s growth in the Middle East, “a region that has often focused on long-haul travel.”

SalamAir’s announcement adds to E195-E2 orders disclosed by the Brazilian planemaker earlier this year, including a 20-aircraft order by Canada’s Porter Airlines during the Farnborough Airshow in July.

Embraer and Royal Jordanian Airlines also signed a memorandum of understanding for the sale of 10 aircraft of its E2 jet family, the Jordanian carrier said in a statement on Thursday.

Embraer, the world’s third-largest planemaker after Boeing (NYSE:) Co and Airbus SE (OTC:), had reported a firm order backlog of $17.8 billion at the end of the second quarter, a four-year high.

Following SalamAir’s new order, analysts at JPMorgan (NYSE:) estimated that Embraer’s backlog now stands at $18.4 billion, which would represent the highest level since the first quarter of 2018.

“We view today’s announcements as positive, as Embraer continues to add new clients and new orders from the E2 jet family to its backlog, despite concerns regarding a global recession next year,” they said.

Brazil-traded shares in Embraer were up 1.5% in afternoon trading, outperforming the broader stock index, which was up 0.2%.

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