Embraer: top 18 customers in the world
As of December 31, 2022, largest customers of Embraer for its E-Jet by number of aircraft in service were SkyWest, Republic, Envoy Air, Azul, Mesa, KLM, JetBlue, Aeromexico, LOT Polish, Tianjin and Horizon Air.
In addition, as of December 31, 88.9% of its firm order backlog for the current Embraer 170/190 family of jets is from Republic Airlines and Horizon Air/Alaska.
Finally, the backlog for the E-Jets E2 family is primarily comprised of orders from Azul, AerCap, AirCastle, AirPeace, Porter and Azorra, which account for 83.1% of its E-Jets E2 family orders.
The company has a diverse and global customer base, and its major commercial aircraft operators include some of the world’s largest regional, low-cost and mainline airlines.
Embraer generally sells commercial aircraft under contracts with its customers at a fixed price, adjusted by an escalation formula.
The contracts typically include an option for its customers to purchase additional aircraft at a fixed price, subject to the same escalation formula.
The contracts also include a product support package to cover the entry into service of its aircraft, as well as a general warranty for those aircraft.
According to Embraer, its main market opportunities lie in direct product substitution, the development of regional aviation in selected markets, such as India, Brazil and Turkey, and in the worldwide growth of the sub-150-seat segment as a result of airline fleet reductions.
For the year ended December 31, 2022, the company generated revenues of US$4.54 billion, of which 92.4% were denominated in U.S. dollars.
Of these revenues, 34.0% corresponded to its Commercial Aviation segment, 27.4% to its Business Aviation segment, 9.9% to its Defense and Security segment, 27.9% to its Services and Support segment, and 0.8% to its other segments.
In the same fiscal year, 62.9% of Embraer’s revenues came from customers in North America, followed by customers in Europe (19.5%), Brazil (11.1%), Asia-Pacific (2.2%), Latin America (except Brazil) (1.2%) and others (3.1 percent).
As of December 31, 2022 and December 31, 2021, its firm order backlog amounted to US$17.5 billion and US$17.0 billion, respectively.