Embraer predicts sales of $96bn in US aviation by 2035

Embraer predicts sales of $96bn in US aviation by 2035

Embraer has released its 20-year Market Outlook for the North American market in which it forecasts 2,060 new jet deliveries in the 70 to 130-seat segment.

It represents nearly 35 per cent of the total worldwide demand for aircraft in this particular segment and is valued at US$ 96 billion at list prices.

Some 47 per cent of the region’s new deliveries are expected to support market growth while 53 per cent will replace ageing aircraft that will be retiring by 2034.

“Despite higher growth rates in other parts of the world, our projections show the US market continuing to dominate the segment because it has such a large volume of existing 70 to 130-seat jets,” said Paulo Cesar Silva, president, Embraer Commercial Aviation.

“However, we foresee room for growth as network airlines look for alternatives to reduce the capacity gap between regional and mainline operations.”

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Further growth is expected as full-service carriers restructure their intra-regional hub-and-spoke operations and deploy larger-capacity regional jets with premium seating in markets traditionally flown by 50-seat jets.

The E175 has become a best-seller in its category with an 80 per cent share of net orders in North America since 2013.

Embraer’s 2015 Market Outlook identifies the 90 to 130-seat jet segment as another cornerstone in a new era that is expected to deliver healthier financial results.

Favourable crew costs in a mainline carrier cost structure now make those jets an even more attractive economic alternative for domestic operations.

The aircraft provide more seats on regional routes while right-sizing capacity in markets currently served by larger narrow-body aircraft.