Embraer Delivers 17 Jets in 2Q20

Embaer (NYSE: ERJ) delivers a total of 4 commercial jets and 13 executive jets in 2Q20. Of the executive jets that were delivered to their customers nine of them were considered light jets and 4 of them larger jets. Since June 30th their backlog has a total of USD 15.4 billion in firm orders.

Embraer’s headquarters are based out of SÃO JOSÉ DOS CAMPOS, Brazil. In the second quarter less commercial aircraft were delivered as there has been a slowdown in demand for commercial travel. The airline that were looking to add on the Embraer 175, E190-E2, or the E195-E2 may now be looking to wait some time before receiving the aircraft.

Embraer recently delivered their 1,600th E-Jet to Helvetic Airways. Joining in celebration of having been part of achieving the milestone, the Swiss airline adjusted their order of 4 E190-E2 to E195-E2. This would bring Helvetic Airways to a total of 12 Ejets-E2 on the books for future orders.

Deliveries by Segment2Q202020
Commercial Aviation49
Embraer 175 (E175)25
Embraer 190-E2 (E190-E2)23
Embraer 195-E2 (E195-E2) 1
Executive Aviation1322
Phenom 10022
Phenom 300712
Light Jets914
Legacy 65011
Praetor 500 1 2
Praetor 60025
Large Jets 48
Total 1731
SOURCE Embraer S.A.

Taking lead in the Executive market

In the Executive Jets segment, Embraer announced the first delivery of its new, enhanced Phenom 300E to Texas law firm Dunham & Jones, Attorneys at Law, P.C. Having delivered a total of 7 Phenom 300 jets in the Second quarter that makes it their best selling aircraft for the quarter.

A unique and spacious aircraft that is uniquely capable of incredible features. Being the only single pilot certified aircraft to be able to fly at MACH .80 it is an incredible fast and efficient aircraft. The speed is really incredible in the air as it can soar above many of the weather systems and you and your guest can arrive with ease.

The various customization features and additional elements that can be incorporated in the aircraft provides options for whatever your needs may be. Not to mention the incredible ramp presence that it brings with leaves others with their jaws to the floor.

We love the Embraer Phenom 300 and focus on being the best in its class. Having elements from the Phenom 100 with enhanced features makes it a more modern and enhance aircraft. Once you step inside one for yourself then you too will understand exactly what sensation we are talking about. Check out the official brochure for the Phenom 300 below, you can download it for easy viewing if you should choose.

Do you think that the Phenom 300 is right for your? Reach out to us at Sales@airmarketgroup.com and we can help you find a model that is either gently used or brand new just for you.

Embraer Backlog – Commercial Aviation (June 30, 2020)

Aircraft TypeFirm OrdersDeliveriesFirm Order
Backlog
E170191191
E175798639159
E1905685644
E195172172
190-E2251411
195-E21488140
Total1,9021,588314
Note: Deliveries and firm order backlog include orders for the Defense segment placed by State-run airlines. (Satena and TAME). SOURCE Embraer S.A.

Record low stock price

The airline industry as a whole took a hit in 2020 from the outbreak of the novel COVID-19 virus. As a result Embraer was dragged down with the others in the group. When we look at how the are performing individually we can see that orders are still being fulfilled and that over Earnings remain optimistic. Their commercial department has shown a bit of weakening in optimism but their executive aircraft products have shown to have an increase in demand.

So although we are seeing the stock trade down near record lows that may be based on a mentality that it is primarily focused on commercial aviation and the market that many investors primarily focus in. When we look at their Executive and Military products we can see consistent revenue.

In the Defense & Security segment, Embraer delivered the third C-390 Millennium multi-mission medium airlifter to the Brazilian Air Force (FAB). Similar to the first two units delivered in 2019 and the additional 25 which will be delivered to the FAB, this third unit is prepared to perform aerial refueling missions, with the KC-390 Millennium designation.

Also, Congo Airways converted its firm order made in December 2019 for two E175 aircraft, with purchase rights for two more, into a firm order for two E190-E2 jets, with purchase rights for a further two aircraft.


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Technical Analysis

This chart will be kept clean and simple to make it easier to other to follow. We can see the major low being tested down near the bottom of the range where we drew the start of our trend line.

We then drew it upwards towards the next level where price is respecting the support level. From there we can also see a development of a horizontal support level with the multiple touches in that zone.

From there is where we determine would be our zone for optimal entry point for a long biased traded. The trend line then serves as our guide to follow the movement for the price in the coming weeks to see how the value respects the line. Price may trade above or below the trend line at any time.

What we as technicians of the market would be looking for is a break and retest on the zone that would then determine a more directional based play which we are traders can then capitalize on.

With a strong Q2 and earnings reports coming up shortly these are all factors to keep in mind when trading with a short term bias. The highs of the range would be a staggering $14 away. Making it back near those levels may take some time but is not impossible. As confidence begins to return and flying becomes more open internationally we can expect to see the sales of aircraft both commercial and executive to start to rise.

About Embraer

A global aerospace company headquartered in Brazil, Embraer celebrates its 50th anniversary with 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.

Disclosures
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