Avelo Airlines Makes History with $4.4B Embraer Jets Purchase
Avelo Airlines has made a significant mark in aviation history. It has become the first U.S. carrier to order Embraer’s E195-E2 jets. The airline has placed a firm order for 50 aircraft, with purchase rights for an additional 50, in a deal worth $4.4 billion at list prices.
The Brazilian manufacturer’s latest and most fuel-efficient regional jet will start deliveries to the Houston-based low-cost carrier in the first half of 2027. The E195-E2 boasts a comfortable 2×2 seating configuration and offers enhanced short-field performance, thanks to Embraer’s proprietary Enhanced Takeoff System (E2TS).
Moreover, the E195-E2 offers approximately 30% lower operating costs compared to Avelo’s current Boeing 737-700s. CEO Andrew Levy has dubbed this upgrade as “Avelo 2.0“. He explained that the aircraft’s exceptional performance and efficiency make it an ideal choice for the airline’s growth strategy, which targets smaller and mid-sized U.S. cities.
This landmark order validates Embraer’s E2 program, which had previously struggled to gain traction in the crucial U.S. market against competitors like the Airbus A220 family. The deal also includes a significant investment from Embraer itself, marking what Avelo calls “the single largest investment” since the airline’s launch in 2021.
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Source: CNBC