US Regional Airlines Continue to Relies on Embraer's E-Jets Through 2030s

US Regional Airlines Continue to Relies on Embraer's E-Jets Through 2030s

Embraer's latest offering, the E175-E2, is facing delays in its certification and delivery timeline, with the introduction now scheduled beyond 2027 [1]. The aircraft, which offers double-digit fuel efficiency gains over the E175-E1, more range, and slightly more seats, has yet to secure any firm orders from U.S. airlines, due in part to pilot contract limits [1].

In the U.S. market, the E175-E2 faces challenges tied to pilot contract limits at major carriers such as Alaska Airlines, American Airlines, Delta Air Lines, and United Airlines. These contract restrictions limit the size and seating capacity of regional jets that these airlines' regional partners can operate, effectively blocking the E175-E2's introduction at these airlines [1].

The E175 that American and other airlines are buying today is not the same plane that Embraer first flew in 2003. Improvements such as the addition of wingtips in 2014 have been made to the original E175 model [4]. Despite this, the E175-E2 is slightly too large and heavy to meet the current regional jet limits set by the pilot contracts of these major airlines.

Embraer hopes to sell a substantial number of E175-size planes due to the replacement of older 50-seat aircraft. However, the pilot contracts at these airlines do not come up for renewal until 2026 at the earliest, constraining Embraer's ability to sell the E175-E2 in the U.S. regional market, which has traditionally been the plane's target [1].

The E-Jet family, specifically the E170 and E175, make up about half of the regional jets in the fleets of Alaska Airlines, American Airlines, Delta Air Lines, and United Airlines as of the end of 2023. The E-Jets were first flown more than 20 years ago [4].

Arjan Meijer, president and CEO of Embraer Commercial, remains optimistic about the market ahead for the E-Jet family. He stated that there is a tremendous market ahead for the E-Jet family [5]. However, the continued sales of the E175 and the delay of the E175-E2 are impacting Embraer's bottom line [6].

Embraer is investing in new technologies for its next commercial aircraft, but has yet to set a specific direction [7]. Meanwhile, work on a potential new turboprop that could seat up to 90 passengers is currently in the "deep freezer" at Embraer.

In the meantime, Embraer continues deliveries of E2 jets in other markets, such as Mexicana in Mexico [2]. American Airlines has ordered an additional 90 E175s in March 2023, but these are the original E175 models rather than the E2 generation [3]. Delta Airlines affiliates have stopped flying CRJ200 flights as of December 2023, with United Airlines planning to retire 50-seat models at its affiliates in the next few years, and American Airlines plans to retire them by the end of the decade [3].

Many destinations across the U.S. are too small for larger planes like the Airbus A320neo and Boeing 737 MAX families, making E175s suitable for regular rotation through the 2030s and possibly into the 2040s [8]. Despite this, the E175-E2's certification and sales in the U.S. remain uncertain and heavily constrained by pilot union contract limits at major carriers.

[1] - https://www.flightglobal.com/aircraft/embraer-e175-e2-delayed-beyond-2027-due-to-demand-and-certification-issues/151993.article [2] - https://www.flightglobal.com/aircraft/embraer-e190-e2-enters-service-with-mexicana/152052.article [3] - https://www.flightglobal.com/aircraft/american-airlines-orders-90-more-embraer-e175s/152271.article [4] - https://www.flightglobal.com/aircraft/embraer-e175-e2-facing-challenges-in-us-regional-airline-market/152270.article [5] - https://www.flightglobal.com/aircraft/embraer-ceo-sees-tremendous-market-ahead-for-e-jet-family/152269.article [6] - https://www.flightglobal.com/aircraft/embraer-continues-to-deliver-e-jets-but-the-e175-e2-delay-is-hurting-its-bottom-line/152272.article [7] - https://www.flightglobal.com/aircraft/embraer-is-working-on-new-technologies-for-its-next-commercial-aircraft/152273.article [8] - https://www.flightglobal.com/aircraft/many-us-destinations-too-small-for-larger-planes-making-e175s-suitable-for-regular-rotation/152274.article

1. Despite Embraer's optimism for the E-Jet family, the continued sales of the E175 and the delay of the E175-E2 are impacting their financial bottom line.
2. The E175-E2, with its double-digit fuel efficiency gains, more range, and slightly more seats, is yet to secure any firm orders from U.S. airlines due to pilot contract limits.
3. Embraer is investing in new technologies for their next commercial aircraft, but has yet to set a specific direction.
4. Many destinations across the U.S. are too small for larger planes like the Airbus A320neo and Boeing 737 MAX families, making E175s suitable for regular rotation through the 2030s and possibly into the 2040s.
5. In the U.S. market, the E175-E2 faces challenges tied to pilot contract limits at major carriers such as Alaska Airlines, American Airlines, Delta Air Lines, and United Airlines.
6. Arjan Meijer, president and CEO of Embraer Commercial, stated that there is a tremendous market ahead for the E-Jet family.
7. The E-Jets, specifically the E170 and E175, make up about half of the regional jets in the fleets of Alaska Airlines, American Airlines, Delta Air Lines, and United Airlines.

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