Avelo Airlines to buy 50 E2 jets from Brazil plane maker Embraer


An Embraer SA E190-E2 passenger aircraft stands on display on day two of the Farnborough International Airshow (FIA) 2018 in Farnborough, U.K., on Tuesday, July 17, 2018.

Bloomberg | Bloomberg | Getty Images

Brazilian airplane maker Embraer has landed its first U.S. sale of its efficient but slow-selling E2 jets with a 50-plane deal from startup carrier Avelo Airlines.

Avelo first started flying in April 2021 with used Boeing 737s but has struggled and recently exited a host of cities on the West Coast. It has also turned to flying deportees for U.S. Immigration and Customs Enforcement, which has sparked protests, demonstrations and backlash from some politicians.

The low-cost airline focuses on smaller cities, with a large operation out of Connecticut. On Monday, without providing a figure or an investor, Avelo announced it won the “single largest investment” since the carrier launched and said the money will be used to grow and improve customer experience. The new Embraer jets, scheduled to start arriving in the first half of 2027, represent big growth for Avelo, which has just 22 Boeing planes now, according to its website.

Avelo said the order for 50 E195-E2 planes, with options for 50 more, will help it modernize its fleet. The airline is betting that the planes’ two-by-two seating configuration and quieter cabins compared with older jets will be a hit with customers.

Read more CNBC airline news

While dwarfed by major U.S. plane maker Boeing and rival Airbus, Embraer is known for building regional jets that airlines rely on for thousands of flights a day for shorter routes or to smaller cities. It has also been solidly profitable for two years, while Boeing, which terminated a more than $4 billion tie-up with Embraer as it dealt with several crises, has struggled.

Despite its solid footing, Embaer’s newer, more fuel-efficient E2 jets have been outsold by similarly sized aircraft like the Airbus A220 family.

The E195-E2, the largest in that family, can seat 132 people in a single-class cabin with 31-inch seat pitch (a measure of the distance from one seat to the one behind it) or 120 people in a three-class cabin.

“The aircraft’s exceptional performance, size, and efficiency make it the perfect choice for the future growth of our scheduled service network,” said Avelo CEO Andrew Levy, former United Airlines CFO, in a news release.

The airline’s used Boeings can seat up to 189 passengers, but too much capacity can drive down fares. Struggling budget carrier Spirit Airlines, for example, lists Airbus A321Neos, with 229 seats.

One challenge with smaller jets for bigger airlines has been that the “majors regard them as a fleet complication,” said Richard Aboulafia, managing director at AeroDynamic Advisory, an industry consulting firm, since they would have to train pilots, acquire simulators and put up other costs to add to their lineups.

“The E2 has terrific economics but airlines have an irrational obsession for range they don’t need,” Aboulafia said.

Avelo’s order is worth $4.4 billion at list prices, the airline said, but that is before usual discounts. Slower-selling planes or big orders often come with significant price cuts.

Don’t miss these insights from CNBC PRO


Related Posts

How donors, access and polls led Trump to reclassify marijuana

President Donald Trump’s move Thursday to sign an executive order easing federal restrictions on marijuana — and clearing the way for a Medicare pilot program covering CBD — caps a…

Christmas shoppers focus on quality rather than deals

While discounts drove purchasing in the early days of the holiday shopping season, consumers are shifting into more thoughtful, quality gifts in the back half of the season as total…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

How donors, access and polls led Trump to reclassify marijuana

  • By admin
  • December 20, 2025
  • 1 views
How donors, access and polls led Trump to reclassify marijuana

Nagal, Shrivalli shine as Eagles down Hawkes, set-up WTL final against Kites

  • By admin
  • December 20, 2025
  • 3 views
Nagal, Shrivalli shine as Eagles down Hawkes, set-up WTL final against Kites

Reliance shares jump 28% year-to-date; is it time to book profits or buy more?

  • By admin
  • December 20, 2025
  • 2 views
Reliance shares jump 28% year-to-date; is it time to book profits or buy more?

BCCI told to address Test debacle and not get swayed by T20 wins: ‘Must still remain priority’

  • By admin
  • December 20, 2025
  • 1 views
BCCI told to address Test debacle and not get swayed by T20 wins: ‘Must still remain priority’

Delhi, Punjab, UP, Haryana, Rajasthan, Himachal, Uttarakhand Weather Forecast, Cold Wave, Fog, Pollution Level & AQI Today News Update

  • By admin
  • December 20, 2025
  • 4 views
Delhi, Punjab, UP, Haryana, Rajasthan, Himachal, Uttarakhand Weather Forecast, Cold Wave, Fog, Pollution Level & AQI Today News Update

US launches strikes on Islamic State targets in Syria after American soldiers’ deaths | World News

  • By admin
  • December 20, 2025
  • 3 views
US launches strikes on Islamic State targets in Syria after American soldiers’ deaths | World News