São Paulo – Brazilian company Embraer delivered 17 aircraft in quarter two, it announced this Wednesday (5). Deliveries included four business jets and 13 airliners. With this, the company ended the first half of the year having delivered 31 aircraft, including nine business jets and 22 airliners.
Deliveries in Q2 2020 decreased sharply compared to Q2 2019, when 51 aircraft were delivered, including 25 airliners and 26 business jets. In H1 2019, deliveries were much higher, at 73 deliveries of 37 business jets and 36 airliners.
“Deliveries of aircraft were negatively impacted by the halt in the beginning of the year due to the separation of business aviation and its related services for the now-closed strategic partnership with The Boeing Company and the COVID-19 pandemic, which has swept over the world, although its impacts on the airliner industry have been less severe than in the business jet industry,” the company’s results report reads.
Boeing and Embraer were negotiating a joint venture on the Brazilian company’s regional jets, but the US company decided to terminate the negotiations last April.
Deliveries by Embraer included an E190-E2 for Helvetic Airways in Switzerland, a Phenom 300E for law firm Dunham & Jones, P.C. in the US, and a KC-390 Millennium (pictured above) to the Brazilian Air Force (FAB). The Brazilian company celebrated the actualization of the firm order by Congo Airways in a contract worth USD 256 million.
Embraer felt the impact of fewer deliveries in its revenues. Q2 saw its net revenue drop by 47% from a year ago, reaching BRL 2.8 billion (USD 527 million). As for H1, net revenue decreased by 33% to BRL 5.7 billion (USD 1 billion), but the impact was higher in the airliner sector.
The company reported that Q2 recorded expenses at BRL 151.1 million (USD 28.4 million) above its spare capacity because of the pandemic, which impacted the gross margin. Embraer saw a net loss of BRL 1.6 billion (USD 300 million) in Q2 from a net income of BRL 26.1 million (USD 4.9 million) a year ago. In H1, the net loss was at BRL 2.9 billion (USD 545 million) from BRL 134.7 million (USD 25.3 million) a year ago.
Translated by Guilherme Miranda
