Embraer forecasts 20-year Latin American aircraft demand

Chile-based Embraer says the Latin American region will take delivery of 720 new jets in the 70- to 130-seat segment through 2034.

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Embraer Commercial Aviation (Santiago, Chile) has released today its market outlook for Latin America, which forecasts that the region will take delivery of 720 new jets in the 70- to 130-seat segment over the next 20 years, representing 11% of the worldwide demand for the segment in the period. The 70- to 130-seat jet fleet in service is estimated to grow from the current 310 units to 740 by 2034.

Embraer says that over the last five years, the annual growth in demand for air transport in Latin America has consistently been above the world average of about 5%, hovering at 7%. This trend is expected to continue over the next 20 years, when the region will grow around 6% annually.

The growth of the region’s middle class will also create new customers for the airlines, since many people have yet to take their first flight, rendering Latin America ripe for air transport. Comparing the region with a mature air travel market like the U.S. reveals enormous potential for growth: Latin America has 0.4 airline passengers per capita, a figure that is one sixth of the U.S.

The first delivery of an Embraer E-Jet in Latin America occurred in 2005, when Panama’s Copa Airlines received an E190. Currently, says Embraer, more than 200 E-Jets are in service in the region, where Embraer is the leader in the segment of jets up to 130 seats, with 70% of market share. The E-Jets family has logged more than 1,700 orders and over 1,200 deliveries to date. The aircraft are in service with some 70 customers from 50 countries.

In order to meet future demand, Embraer is bringing the E-Jets E2 to the market to complement its current E-Jets offering. The company recently rolled out the first E190- E2, which will enter service in the first half of 2018.