Embraer Wins Deal From LATAM Airlines to Supply Up to 74 E195-E2 Jets

Embraer S.A. ERJ recently landed an agreement with LATAM Airlines Group to supply up to 74 E195-E2 small, narrowbody aircraft, including 24 firm orders and 50 purchase options. Deliveries of the firm orders are scheduled to begin in the second half of 2026, starting with LATAM Airlines Brazil and potentially extending to other affiliates within the group. The 24-aircraft firm order is worth about $2.1 billion at list prices. This new fleet addition will strengthen LATAM Group’s hub operations, allowing it to reach more destinations and broaden travel choices for passengers. The E195-E2 provides adaptable seating options, accommodating 120 to 146 passengers in a single-class design, with a maximum capacity of either 150 or 132 seats, depending on the configuration.Benefits of ERJ’s AgreementThe choice of Embraer's E195-E2 highlights the aircraft's strong economics, improved fuel efficiency and flexibility, which promote profitable growth through new destinations and increased connectivity.This deal benefits Embraer by bringing in significant revenues, boosting its presence in the small, narrowbody aircraft market and reinforcing its partnership with LATAM Airlines.Growth Opportunities for ERJPer a report by aerospace leader Airbus SE EADSY, rising air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is boosting the commercial aircraft market. The global passenger and freighter fleet is projected to nearly double between 2025 and 2044, with demand for 43,420 new aircraft. This trend is expected to benefit fuel-efficient aircraft manufacturers such as Embraer.In September 2025, Embraer secured an order from Avelo Airlines for 50 E195-E2 aircraft, with an option for 50 more, highlighting the continued strong demand for ERJ’s aircraft among commercial airlines.Prospects for Other Aerospace StocksOther aerospace stocks that stand to benefit from the growing commercial aviation market are as follows:Airbus SE: The company has established itself as a preferred choice for passengers and operators worldwide. Its passenger aircraft lineup includes the A220, A320, A330, A350 and A380 families.Airbus has a long-term (three to five years) earnings growth rate of 22.8%. The Zacks Consensus Estimate for 2025 sales is pegged at $85.54 billion, which indicates a rise of 14.4%.The Boeing Company BA: It has been a leading commercial jet manufacturer for decades, with more than 14,000 aircraft in service worldwide. Its commercial lineup includes the 737 MAX, 747-8, 767, 777 and 787 models.Boeing has a long-term earnings growth rate of 17.9%. The Zacks Consensus Estimate for 2025 sales stands at $85.66 billion, which calls for a jump of 28.8%.ERJ Stock Price MovementIn the past year, Embraer shares have surged 63.8% compared with the industry’s growth of 13%.Image Source: Zacks Investment ResearchERJ’s Zacks Rank & A Key PickEmbraer currently carries a Zacks Rank #3 (Hold). A better-ranked stock from the same industry is Howmet Aerospace Inc. HWM, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.HWM has a long-term earnings growth rate of 21.6%. The Zacks Consensus Estimate for 2025 sales stands at $8.12 billion, which calls for a jump of 9.4%.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report Airbus SE - Unsponsored ADR (EADSY): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks