Key points
- Avelo Airlines, a U.S. low-cost carrier, has ordered 50 Embraer E195-E2 jets, with options for an additional 50.
- This is Embraer’s first major U.S. sale of its E2 jets, marking a significant win against Airbus’ competition.
- The deal is valued at $4.4 billion at list prices, though substantial discounts are expected.
- The E195-E2’s fuel efficiency and two-by-two seating configuration are key selling points.
Avelo Airlines, a relatively young U.S. budget carrier, has placed a substantial order for 50 Embraer E195-E2 jets, marking a significant win for the Brazilian aircraft manufacturer. This represents Embraer’s first large-scale sale of its E2 series jets in the U.S. market, a significant breakthrough against stiff competition from larger players, such as Airbus.
The deal, announced Monday, includes options for an additional 50 aircraft, potentially doubling the order in the future. The total value of the initial order is estimated at $4.4 billion at list prices. However, industry experts anticipate significant discounts due to the scale of the purchase and current market dynamics.
The acquisition of Embraer E195-E2 jets marks a significant step in Avelo’s growth strategy. Currently operating a fleet of 22 Boeing 737s, the airline plans to use the new, more fuel-efficient aircraft to modernize its fleet and enhance its customer experience.
The E195-E2’s two-by-two seating configuration promises a more spacious and comfortable passenger experience compared to older models, a key differentiator in the competitive low-cost airline market. Deliveries of the new aircraft are scheduled to begin in the first half of 2027.
Avelo, which focuses on smaller cities and has a substantial presence in Connecticut, has also recently secured a large investment, described as the largest since its inception. However, the specific amount and the investor remain undisclosed. The funds will be used to support its expansion and further improve its customer service offerings.
The airline’s choice of Embraer’s E2 series, despite the market dominance of Airbus and Boeing, highlights the E195-E2’s competitive advantages in fuel efficiency and passenger comfort for shorter routes serving smaller cities.
While Embraer’s E2 jets have faced challenges competing against similarly sized aircraft, Avelo’s significant order underscores the appeal of the E195-E2 for airlines targeting specific market niches.
The smaller size of the E2 jets, compared to the larger aircraft typically utilized by major carriers, may present logistical challenges. Still, Avelo’s focus on point-to-point travel between smaller cities makes the E195-E2 a compelling choice. This deal represents a notable success for Embraer, particularly considering Boeing’s recent struggles and the termination of its partnership with the Brazilian manufacturer.
