Embraer Wins 100 E195-E2 Aircraft Supply Order From Avelo Airlines

Embraer S.A. ERJ recently secured an order from Avelo Airlines to supply 50 of its E195-E2 aircraft, with the option to deliver 50 more. The aircraft deliveries are anticipated to begin in the first half of 2027, aligning with Avelo Airlines’ goal of providing affordable and convenient travel across the United States. The order's worth, excluding purchase rights, is $4.4 billion.

These orders are expected to strengthen Embraer’s future revenue streams and boost its profitability.

Why E195-E2 Jets?

Embraer’s E195-E2, the largest model in the E-Jet E2 family, is engineered to deliver maximum efficiency and returns on high-density routes. The aircraft offers double-digit fuel savings compared to the previous generation E-Jets. It also offers seating for 120-146 passengers and features a flying range of 3,000 nautical miles (5,556 km). 

The E195-E2’s impressive features have fueled strong market demand, as seen in recent deals such as Airlink and Azorra’s August 2025 lease agreement to acquire 10 new Embraer E195-E2 jets.

Growth Opportunities for ERJ

According to a report by aerospace leader Airbus SE EADSY, rising air passenger traffic, backed by enhanced air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth for commercial passenger jets. The global passenger fleet is projected to nearly double between 2025 and 2044, with demand for 43,420 new passenger and freighter aircraft. This trend is expected to benefit fuel-efficient aircraft manufacturers such as Embraer.

Embraer’s Commercial Aviation segment backlog at the end of the second quarter of 2025 was $13.1 billion. Such a strong backlog not only highlights the steady demand for ERJ aircraft from commercial airlines, including recent orders, but also reinforces the company’s future revenue potential.

Prospects for Other Aerospace Stocks

Other aerospace stocks that stand to benefit from the growing commercial aviation market are as follows:

Airbus SE: It is one of the forerunners in the global commercial aircraft space. Its order backlog amounted to 8,754 commercial aircraft at the end of June 2025.

Airbus has a long-term (three to five years) earnings growth rate of 22.8%. The Zacks Consensus Estimate for 2025 sales is pegged at $85.54 billion, which indicates a rise of 14.4%.

The Boeing Company BA: It has been a premier manufacturer of commercial jetliners for decades. Its Commercial Airplanes segment had a backlog of $522.2 billion as of June 30, 2025.

Boeing has a long-term earnings growth rate of 17.9%. The Zacks Consensus Estimate for 2025 sales stands at $85.66 billion, which calls for a jump of 28.8%.

Textron Inc. TXT: Its Textron Aviation unit is a well-known designer of business jet brands like Cessna and Beechcraft. The segment’s order backlog as of June 28, 2025 was $7.85 billion. 

Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales is pegged at $14.81 billion, which indicates a rise of 8.1%.

ERJ Stock Price Movement

In the past year, Embraer shares have surged 64.7% compared with the industry’s growth of 14%.

ERJ’s Zacks Rank

Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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