A new 20-year forecast released by Embraer for the 70- to 130-seat airliner segment projects deliveries of 6,350 jets worth $300 billion. The company sees a demand for 2,250 units in the 70- to 90-seat segment and 4,100 in the 90- to 130-seat category.
The forecast’s regional breakdown shows North America accounting for a 32-percent share of demand, followed by Europe at 18 percent, China at 16 percent and Latin America at 11 percent. Embraer attributes the growth in the U.S. to a capacity discipline that has proven “very effective” in generating higher profits. As airlines become more attractive to investors, a shift in the main business goals from unit cost and market share to unit profit and return on investment will result, it concluded.
“Right-sized aircraft can regularly generate higher profit per seat since they have fewer available seats allocated for low-fare passengers,” explained Embraer Commercial Aviation CEO Paulo Cesar Silva. “High efficiency of assets is essential to sound financial performance. Those attributes–combined with hub-and-spoke efficiency, narrowbody aircraft complement and new market development–will generate significant demand for new aircraft in the segment.”
