Deal Valued At $182 Million

Embraer and American Airlines Group (AAG) have signed a firm order for four E175 jets. The contract, in addition to the original order placed by the airline in 2013, for 60 E175s, has a value of $182 million, based on current list prices, and will be included in Embraer's 2017 second-quarter backlog. The deliveries will start in the last quarter of this year.

"The E175 has served AAG very well since its entry into service and this new order continues to show their confidence in the platform. We also commend the Envoy team on their exceptional E175 operating performance," said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. "The market for 70 to 76 seaters is still strong, especially considering all the older 70 seaters needing replacement. Embraer remains the clear leader in that space."

American Airlines selected Envoy, a wholly owned subsidiary of American Airlines Group, to operate the four aircraft, which will be configured with 12 First Class, 20 Main Cabin Extra and 44 Main Cabin seats, for a total of 76 seats.

With this contract, Embraer has sold a total of 336 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.

(Source: Embraer news release. Image from file)

FMI: www.embraer.com