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WASHINGTON - Avelo Airlines has placed a firm order for 50 Embraer E195-E2 aircraft with purchase rights for an additional 50 jets, the company announced Wednesday. The deal has a list-price value of $4.4 billion for the firm orders, with deliveries expected to begin in the first half of 2027. For Embraer (NYSE:ERJ), which currently has a market capitalization of $11.1 billion and shows impressive revenue growth of 40.5% over the last twelve months, this order represents a significant boost to its commercial aviation segment. According to InvestingPro analysis, Embraer’s current stock price suggests slight overvaluation relative to its Fair Value.
The agreement will make Avelo the first U.S. carrier to operate Embraer’s largest commercial aircraft. The airline plans to use the new jets to complement its existing Boeing 737NG fleet while expanding its network across the United States.
"Our customers will love the E2’s comfortable 2x2 seating, in-seat power ports, large overhead bins, and quiet cabin," said Andrew Levy, Avelo Airlines Founder and CEO, in a press release statement.
The E195-E2 features enhanced short-field takeoff capability that will allow Avelo to access airports with constrained runways. This technology, called E2TS (Embraer Enhanced Takeoff System), is proprietary to Embraer and will help the airline open new markets.
Arjan Meijer, Embraer Commercial Aviation President and CEO, noted that the aircraft’s "fuel efficiency, quiet operations, and short-field capability will unlock new markets and optimize capacity across its network."
Avelo currently serves 47 cities across 18 states and Puerto Rico, along with destinations in Jamaica, Mexico, and the Dominican Republic. The airline has flown nearly eight million customers since beginning operations in April 2021.
Embraer (NYSE:ERJ) is a Brazilian aerospace company that has delivered more than 9,000 aircraft globally since its founding in 1969.
In other recent news, Embraer reported its second-quarter earnings for 2025, showcasing a record revenue of $2 billion. The company achieved an adjusted EBIT margin of 10.5%, marking the highest in a decade. Earnings per share were reported at $0.71, and the company’s backlog reached an all-time high of BRL 29.7 billion. Despite these strong financial results, the company’s stock experienced a decline of 2.43% after the earnings announcement. These developments highlight Embraer’s significant financial performance in the recent quarter.
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