Air TransportEmbraer shares fall after Azul halves E195-E2 order to 25 jets
Embraer shares fell on December 26, after Azul Linhas Aéreas reduced its firm orders for E195-E2 jets from 51 to 25 units. The order adjustment was communicated to the market on December 23.
The change comes as Azul continues its restructuring process under Chapter 11 in the United States. Embraer’s stock reached an intraday low of R$88.60 in São Paulo, with its New York-listed shares down 0.22%.
The renegotiated purchase agreement between Embraer and Azul was formalized on November 26. No additional details on delivery timelines or financial terms were disclosed by either party.
Azul’s original E195-E2 order was placed between 2014 and 2018, representing a key part of the airline’s fleet modernization strategy. The reduction reflects ongoing adjustments linked to Azul’s financial restructuring.
The E195-E2 is the largest aircraft in Embraer’s commercial portfolio and a central element of the manufacturer’s order book. Prior to the adjustment, Azul was among Embraer’s largest E2 customers in Latin America.
The order renegotiation was formalized on November 26 as the Brazilian airline continues financial restructuring under Chapter 11 proceedings in the United States.
Azul has been in a financial restructuring process since May, seeking to address its debt amid challenging market conditions.
The original 51-unit order, placed between 2014 and 2018, represented one of the largest commitments for the Embraer E195-E2, though Azul has not taken delivery of any aircraft from this agreement.
Embraer’s shares, however, had accumulated a 55% increase in value since January.
The E195-E2 program has secured multiple major orders since its launch, but the reduction by Azul removes a significant portion of its backlog in the Latin American market.
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