The news that Oman’s SalamAir has placed a standing order for six E195-E2 aircraft from Embraer SA (EMBR3.SA) with options for an additional six jets boosted the price of the Brazilian aircraft manufacturer’s stock on Thursday.
The contract, which will be added to Embraer’s third-quarter backlog, was valued at $934.6 million with all options exercised. Beginning deliveries are anticipated for late 2023. According to Arjan Meijer, CEO of Embraer Commercial Aviation, the order shows the company’s expansion in the Middle East, “a market that has often concentrated on long-haul travel.”
The E195-E2 orders made public by the Brazilian manufacturer earlier this year, notably a 20-aircraft purchase placed by Porter Airlines of Canada during the Farnborough Airshow in July, now include SalamAir’s announcement. A memorandum of understanding for purchasing 10 of Embraer’s E2 jets was also inked, Royal Jordanian Airlines announced in a statement on Thursday.
After Boeing Co (BA.N) and Airbus SE (AIR.PA), Embraer is the third-largest jet manufacturer in the world. At the end of the second quarter, it recorded a solid order backlog of $17.8 billion, a four-year high. After the second quarter, Embraer was the third-largest aircraft manufacturer in the world behind Boeing Co. BA.N and Airbus SE AIR.PA reported a solid order backlog of $17.8 billion, a four-year high.
SalamAir’s new order, according to analysts at JPMorgan, has increased Embraer’s backlog to $18.4 billion, the company’s most extensive level since the first quarter of 2018.
Despite worries about a worldwide recession in 2019, they stated, “We view today’s announcements as encouraging, as Embraer continues to add new clients and fresh orders from the E2 jet family to its backlog.”