Embraer’s firm order backlog has fallen to its lowest level in six years as the world’s third largest planemaker struggles against economic woes in Europe and North America.
In a securities filing this week, the Brazilian company said its backlog stood at US$12.9 billion at the end of June, down from $14.7 bn after the first quarter of the year.
The drop in unfilled orders came as Embraer stepped up deliveries – handing over 35 commercial airliners and 20 executive jets during the second quarter compared to 21 and 13 aircraft during the first quarter. But the sagging backlog also reflected concerns about demand for regional jets in the US and Europe, which together make up more than 60 per cent of Embraer’s market in the 120-seat and under segment.
Larger rivals Boeing and Airbus, in contrast, have seen their order books soar in recent years despite economic troubles, as airlines rush to update their fleets with more fuel efficient aircraft.