American Airlines Inks Firm Order With Embraer For Four New E175s

Embraer S.A. ERJ said American Airlines Group Inc AAL has signed a firm order for four new E175s.

The contract value is $230.6 million at list price and will be included in Embraer's 2023 Q3 backlog.

The aircraft will be operated by American's wholly-owned subsidiary, Envoy Air.

With the deliveries slated for the fourth quarter of 2024, Envoy's all E-Jet fleet will grow to over 150 aircraft by the end of 2024.

"This new order demonstrates once more the importance of the E175 to connectivity across the United States, and is another sign that the challenges the market has been facing are improving," said Martyn Holmes, CCO, Embraer Commercial Aviation.

"The E175 is the backbone of the US regional network, with over 620 aircraft sold, and 86% market share since 2013."

To date, the worldwide E170/E175 fleet has accumulated over 19.5 million flight hours with Envoy having flown 1.3 million of these hours.

Price Action: ERJ shares are trading higher by 1.07% at $14.21 on the last check Thursday.