Embraer remains upbeat on the overall state of the market for regional jets. Speaking during its second-quarter results call on 31 July, Embraer chief executive Frederico Curado said he foresees a surge in demand from US mainline carriers for larger regional jets in the short- to medium-term.
He sees an opportunity for Embraer and other regional aircraft manufacturers to provide replacements for US-based airlines' ageing regional fleets in the near-term. Nonetheless, Embraer was hit with 10 cancellations in the second quarter of 2012, with the majority coming from Ukrainian carrier Dniproavia, the Brazilian airframer has disclosed.
Dniproavia announced in January 2011 that it intended to purchase 10 Embraer 190s to operate jointly with partner airline AeroSvit. It has so far taken delivery of two aircraft, with a further three still on order.
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Ukrainian carrier AeroSvit operates a pair of E-190 aircraft
The remaining five E-190 cancellations in the second quarter are split between Republic, which cancelled four E-190s, and Finnair, with one.
As of 30 June, Embraer reported a firm backlog of 200 E-Jets, of which 122 are for E-190s. The airframer has delivered 56 E-Jets so far this financial year, towards its full-year target of between 105 and 110 aircraft.
The airframer added to its order tally on 31 July with a commitment from Venezuelan carrier Conviasa Airlines. It ordered six E-190s, worth $271 million at list prices. First delivery is scheduled for the end of 2012.
Conviasa's agreement includes options for 14 more E-190 jets, which could increase the total value of the contract to $904 million if all its options are firmed.
In the second quarter to 30 June, net profit stood at $54.3 million, a decline of 43.7% compared with the $96.4 million recorded in the same period last year.
The company's net profit for the quarter was largely impacted by the appreciation of the US dollar against the Brazilian real, which went up about 11% throughout the quarter.
Revenue increased 26.4% year-on-year to $1.72 billion, with the commercial aviation division contributing $1.18 billion, while its business jet operation added $261 million and defence $266 million.