Aircraft manufacturer Embraer has released its 2018 Q3 report which largely details its deliveries during the period.
It reads: “During the third quarter of 2018 (3Q18), Embraer delivered 15 jets to the commercial aviation market and 24 business jets, being 17 light jets and 7 large jets. On September 30, Embraer’s firm order backlog totaled USD13.6 billion.
Regarding the commercial aviation market, Embraer forecasted in its Market Outlook a demand for 10,550 new aircraft with up to 150 seats worldwide over the next 20 years.
The in-service fleet is set to increase to 16,000 aircraft, up from the 9,000 aircraft currently in operation. Market growth will drive 65% of this demand, while the remaining 35% of the projected demand will be to replace ageing aircraft.”
“A total of 134 jets were removed from Embraer’s backlog in 3Q18. The majority of these planes belong to an order placed by Skywest for 100 E175-E2s, and were removed largely due to IFRS accounting changes.
Given current timing uncertainty of the scope clause changes in the U.S. market to allow the heavier E175-E2 to be flown by regional airlines under capacity purchase agreements (CPAs) for mainline airlines, Embraer has proactively adopted best practices to align with the latest IFRS principles and remove the order from backlog given its conditionality terms. Skywest remains committed with the E175-E2 order and its terms are unchanged.
The other 34 jets that were removed from the Company’s backlog in 3Q18 are related to cancellations, including an order for 24 E190 jets that were cancelled by JetBlue following its recent fleet renewal decision.”