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Embraer's E-Jets remain key players in US regional airline fleets

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Embraer's E-Jets remain key players in US regional airline fleets
Research
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Kristy Tolley Editor | The Points Guy

Embraer's E-Jets, particularly the E170 and E175 models, remain a significant part of the U.S. regional airline fleet. As of late 2023, these aircraft constituted around half of the 1,367 regional jets operated by major carriers such as Alaska Airlines, American Airlines, Delta Air Lines, and United Airlines.

American Airlines bolstered its American Eagle fleet with an order for 90 additional E175s in March, supplementing its existing fleet of over 240 aircraft. This move highlights the enduring popularity of the E-Jet family more than two decades after their introduction.

Arjan Meijer, president and CEO of Embraer Commercial, expressed optimism about the market potential for these jets. "The 175-E1 is still a great aircraft for the U.S.," he stated at an investor event in New York. "We believe there is a tremendous market ahead of us."

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The demand for these jets stems from the need to replace older 50-seat models like CRJ200s and ERJ-145s. According to aviation analytics firm Cirium Diio, Delta's affiliates ceased flying CRJ200s in December 2023. Meanwhile, United plans to phase out similar models soon, with American following suit by decade's end.

Although specific sales figures were not disclosed due to pilot contract restrictions limiting direct replacements, Meijer emphasized that there is substantial demand for planes like the E175 given their suitability for smaller U.S. destinations.

However, while continued sales of the E175 benefit Embraer's finances, they also hinder progress on its next-generation E-Jets—the E2 series—intended to replace earlier models. Despite boasting improved fuel efficiency and capacity over the original versions (the E175-E1), no firm orders have been secured from U.S. airlines due to strict "scope clauses" in pilot contracts that limit regional jet size and weight.

"The E175-E1, it's such an amazingly strong aircraft," Meijer noted regarding this limitation.

Current contracts maintaining these limits will not be revisited until at least 2026. Despite enhancements like wingtips introduced in 2014 that improved fuel efficiency by over six percent compared to initial designs without them—the future direction remains uncertain for Embraer's regional segment offerings amid ongoing research into new technologies such as hydrogen propulsion systems or eVTOL aircraft concepts under CEO Francisco Gomes Neto's leadership.

"We are really investing in new technologies to keep our readiness for a new product," Neto remarked but acknowledged there are no definitive plans yet concerning future commercial aircraft developments.

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