SkyWest Orders 19 Embraer E175 Aircraft for Operation with United Airlines

Rhea-AI Summary

Embraer agrees to sell 19 new E175 jets to SkyWest for operation in the United Airlines network. The contract is valued at US$1.1 billion and the aircraft will be delivered in Q4 2024.

Positive

• Embraer secures a US$1.1 billion contract with SkyWest for 19 E175 jets, boosting their Q3 backlog. The sale will strengthen their partnership and contribute to the growth of North American regional aviation.

Negative

• None.

SÃO JOSÉ DOS CAMPOS, Brazil, Oct. 26, 2023 /PRNewswire/ -- Embraer (NYSE: ERJ; B3: EMBR3) has agreed to the sale of 19 new E175 jets to SkyWest, Inc. (NASDAQ: SKYW) for operation in the United Airlines (NYSE: UAL) network, adding to the 90 E175 jets SkyWest already operates for United. The E175 aircraft will fly exclusively with United under a Capacity Purchase Agreement (CPA). The value of the contract, which has been included in Embraer's Q3 backlog, is US$1.1billion, based on list price.

The 70-seat aircraft will be delivered in a three-class configuration. Deliveries will begin Q4 2024.  

President and CEO of SkyWest Chip Childs said, "SkyWest is already the largest E175 operator in the world, and when this order is delivered we will have over 250 E175s. We look forward to continuing to improve the passenger flying experience with enhanced comfort and reliability."

Martyn Holmes, CCO, Embraer Commercial Aviation, said, "We are pleased to build upon our superb partnership with SkyWest. The E175 is truly a versatile aircraft, the backbone of North American regional aviation."

Images: https://embraer.imagerelay.com/share/85fe52c5353541cfb77657d7e89168c9

About Embraer

A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense & Security and Agricultural Aviation. The company designs, develops, manufactures and markets aircraft and systems, providing Services & Support to customers after-sales.

Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.

Embraer is the leading manufacturer of commercial jets up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service and parts distribution centers, among other activities, across the Americas, Africa, Asia and Europe.

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SOURCE Embraer S.A.

FAQ

What is the value of the contract between Embraer and SkyWest?

The contract is valued at US$1.1 billion.

When will the E175 jets be delivered?

The deliveries are scheduled to begin in Q4 2024.

How will the sale of E175 jets benefit Embraer?

The sale will contribute to the growth of North American regional aviation and strengthen their partnership with SkyWest.