Embraer Projects Market Demand for 6,400 New Jet Deliveries in the 70-130+ Seat Segment Over the Next 20 Years

Paris, France, June 20th, 2017 – According to the latest Market Outlook, Embraer projects a steady market demand for 6,400 new jets in the 70-130+ seat capacity category (2,280 units in the 70-90 seat segment and 4,120 units in the 90-130+ seat segment), worth USD 300 billion, by 2036.

The 70-130+ seat jet world fleet-in-service will increase from 2,700 aircraft in 2016 to 6,710 by 2036, the fastest growing segment among all aircraft seat capacities. Market growth will drive 63% of total demand and the remaining 37% will be delivered to replace ageing aircraft.

70-130+ Seat Jet Deliveries by Region

Region Deliveries Share

North America 2,020 32%

Asia Pacific 1,710 27%

Europe 1,150 18%

Latin America 690 11%

CIS 390 6%

Africa 220 3%

Middle East 220 3%

World (2017-2036) 6,400

Whilst region-specific outlooks vary considerably, the underlying drivers to sustain the projected market demand for jets in the 70-130+ seat capacity category remain intact, from feeding complex bank structures at major hubs to pioneering new markets and complement narrow-body aircraft operation.Fleet optimization is critical in the vicissitudes of business cycles, and a rationalized fleet does not necessarily signify an optimized one. Right-sized aircraft call for a new smarter approach. Greater control in matching aircraft capacity to market demand prevents the erosion of unit revenues and provides competitive cost structure.

The E195-E2, for example, will provide an attractive proposition with much lower trip costs and comparable seat-mile costs to than its large narrow-body counterparts, while combining growth and higher returns with the opportunity to increase unit revenue with a right-sized aircraft.

“The airline industry is notoriously known for its boom and bust cycles. Better seat inventory control allows a continuous search for higher profits and efficiency. The ability to shift back towards revenue unit growth, instead of aggressive capacity expansion, is crucial”, said John Slattery, President & CEO, Embraer Commercial Aviation.

Jets in the 70-130+ seat capacity category are one of the main pillars of business sustainability. As the most efficient single-aisle family of aircraft, the E-Jets E2 is perfectly positioned to keep Embraer as the market leader in the segment and maximize profitability for both airlines and leasing companies.

About Embraer’s Market Outlook
Since 2004, when the 1^st edition of Embraer’s Market Outlook was published, the company’s analysts have continuously refined their forecast models in order to identify and predict future trends. The process consists of two main steps: (1) a traffic demand forecast for the future evolution of RPKs — revenue-passenger kilometer — by regions and sub-regions based on econometrics for the next 20 years and (2) an aircraft demand forecast that estimates the number of new aircraft deliveries from 30-seat turboprops to wide-bodies needed to support the air transport demand growth during the same period.

The 2017-2036 full report is available at http://www.embraermarketoutlook2017.com.

Daphné Savard

Daphné Savard occupe le poste d’administratrice du site ou webmestre ainsi que celui de responsable des relations avec les annonceurs et les lecteurs.

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