Luxair, the national carrier of Luxembourg, has expanded its fleet with a fresh order for two E195-E2 jets from Embraer S.A. (NYSE:ERJ; B3:EMBR3), a prominent player in the Aerospace & Defense industry. With a market capitalization of $6.79 billion and impressive year-to-date returns of 97%, Embraer continues to strengthen its market position.
This purchase follows an initial 2023 agreement for four of the same model, bringing Luxair's total E195-E2 orders to six, with three more purchase rights pending. According to InvestingPro, Embraer's strong financial health and growth trajectory make it a noteworthy player in the aerospace sector.
The announcement was made Tuesday, with Luxair exercising options from the previous year's contract. These aircraft are part of Luxair's strategy to enhance environmental sustainability and customer comfort.
The first delivery from the 2023 order is expected in early 2026, while the new order secures delivery slots for 2027. Embraer's solid revenue growth of 17% and healthy current ratio of 1.56 suggest strong operational execution capability for these deliveries.
Gilles Feith, CEO of Luxair, highlighted the E195-E2's alignment with the airline's vision, noting its quieter operations, superior fuel efficiency, and exceptional passenger comfort. Embraer's Marie-Louise Philippe expressed gratitude for Luxair's continued trust and emphasized the E2's suitability for the airline's long-term fleet and network optimization.
The E195-E2, recognized for its efficiency in the single-aisle segment, will feature a single-class configuration with 136 seats and no middle seats, using Embraer's two-by-two seating arrangement. Luxair has opted for Recaro seating, now available as supplier-furnished equipment.
Luxair's operations not only include passenger air transport to major European cities and hubs but also a tour operator division, airport services, and an air cargo division. Embraer, headquartered in Brazil, has a global presence in the aerospace industry with over 9,000 aircraft delivered since 1969.
This expansion of Luxair's fleet with Embraer's E195-E2 jets represents a commitment to growth while maintaining a focus on sustainability and passenger experience. With a robust EBITDA of $441 million and analysts projecting continued profitability, Embraer demonstrates strong fundamentals.
The information is based on a press release statement filed with the SEC. For detailed insights into Embraer's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Embraer S.A. has reported significant growth in its third quarter of 2024. The Brazilian aerospace conglomerate has seen substantial increases in its revenue and maintains a robust order backlog.
The company revised its financial guidance for the year, maintaining its 2024 revenue guidance at a midpoint of $6.2 billion and increasing its adjusted EBIT margin guidance to 9.5%. Despite supply chain constraints, Embraer S.A. remains confident with a minimum free cash flow projection set at $300 million for the year.
In other developments, Embraer S.A. has secured a contract with Portugal's Ministry of National Defense for the supply of 12 A-29N Super Tucano aircraft. This agreement makes Portugal the first country to acquire the NATO version of this advanced trainer and light attack aircraft.
The company's firm order backlog has reached $22.7 billion, indicating strong future growth potential. Embraer's eVTOL business, Eve, is on track for its first flight in early 2025, with regulatory certification anticipated in 2027. These are among the recent developments for Embraer S.A.
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