Embraer Avelo E195-E2 jet deal marks first US E2 fleet order

Embraer

The Embraer Avelo E195-E2 jet deal marks a landmark order for Brazil’s regional jet champion in the US market. Embraer will sell 50 E195-E2 aircraft to US low-cost carrier Avelo Airlines, with options for 50 more. As a result, the Embraer Avelo E195-E2 jet deal carries a list price of $4.4bn and signals growing US interest in next-generation regional jets.

Embraer expects to deliver the aircraft by the first quarter of 2027 under the Embraer Avelo E195-E2 jet deal. The E195-E2 offers lower fuel burn, reduced noise and strong economics on thinner routes compared with larger narrowbodies. Therefore, Avelo can add frequencies and reach constrained regional airports while keeping unit costs competitive. The deal also represents the first US fleet order for the E2 family, giving Embraer a valuable reference customer in its largest commercial market.

Tariff headwinds and US market exposure

The Embraer Avelo E195-E2 jet deal also unfolds against a changing US trade backdrop. Earlier this year, Washington imposed 10% tariffs that Embraer has described as a potential headwind. However, the latest 50% tariff round exempted aircraft and parts, easing pressure on the planemaker’s core export line. During its latest earnings call, Embraer said it is still “bracing for impact” from tariff risk, even as this contract proceeds.

US airlines account for a large share of Embraer’s commercial and executive jet deliveries. Therefore, any escalation in trade measures could affect pricing, margins or delivery timing under the Embraer Avelo E195-E2 jet deal. For now, the tariff exemptions suggest policymakers still view aviation hardware as strategically sensitive and less suitable for punitive duties. This creates a window for Embraer to deepen its US footprint while broader trade tensions continue.

Fleet strategy and competitive implications

The Embraer Avelo E195-E2 jet deal fits Avelo’s strategy to modernise its fleet and expand across underserved US markets. The airline currently flies Boeing 737-700 and 737-800 aircraft and will use the E195-E2 to complement, rather than replace, those jets. As a result, Avelo can right-size capacity on smaller city pairs, boost frequency and improve load factors without abandoning larger trunk routes.

For Embraer, the deal strengthens the competitive position of the E2 family against Airbus’s A220 and future small narrowbody concepts. Meanwhile, the Embraer Avelo E195-E2 jet deal showcases the aircraft’s short-field and efficiency advantages to other US carriers. If performance meets expectations, additional US orders could follow, further diversifying Embraer’s backlog and supporting higher production rates through 2030.

The Metalnomist Commentary

Embraer’s win with Avelo shows that next-generation regional jets can still carve out space in a market obsessed with larger narrowbodies. The combination of tariff exemptions, strong operating economics and a visible US launch customer gives the E195-E2 renewed momentum. Market participants should watch whether other US airlines follow Avelo’s lead, especially at slot-constrained or noise-sensitive airports.