The U.S. company Avelo Airlines has ordered 50 E195-E2 jets from Embraer, with purchase rights for an additional 50. For the first sale of the E195-E2 jet-one for those regional routes-in the U.S. Embraer placed an order so big, with the value of $4.4 billion-R$23.9 billion at today's exchange rate-and the option of buying another 50 later on. Deliveries will begin during the first quarter of 2027.
Up until now, such a landmark deal couldn't have been fathomed.
This agreement has caused a breakthrough moment for Embraer as Avelo became the first American carrier to place a commitment on the E2 family of jets. Large American airlines had traditionally favored the first generation Embraer 175 due to weight and scope clause restrictions, thereby debaring the E175-E2 and E195-E2 from the regional market. With the decision by Avelo to make the break, the next-generation narrowbody from Embraer will see entry into the U.S. market.
The sale is significant news for the Brazilian company, especially at a time marked by the tariffs imposed on Brazil by the Donald Trump administration. However, after the first decision, Embraer was exempted from the 50% tariff imposed by the United States on Brazilian products. The main reason for the tariff removal was its impact on American airlines, which would have had to bear the increased costs.
Avelo Airlines: A Newcomer with Bold Plans
Avelo is ultra-low-cost airline, with its corporate headquarters based in Los Angeles. Over the years, Avelo has thrived under the limiting factor it imposed on itself with a small fleet of 22 Boeing 737s (eight 737-700s and fourteen 737-800s). Despite being relatively tiny compared to big names such as Delta or American Airlines, Avelo has made its mark by attending to underserved airports and scheduling cheap point-to-point service. Prices often fluctuate below $40 for short- and medium-haul routes, hence drawing in tight-budgeted customers.
The airline's operations are dominantly domestic, scheduled along the West and East Coasts of America-U.S., with maybe some extra service into Mexico, Jamaica, and the Dominican Republic. Being outfitted with the Embraer E195-E2, the airline looks at broader options by means of farther sites in small airports and longer routes, utilizing the capability of the aircraft to operate on shorter runways.
Why the Embraer E195-E2?
The E195-E2 offers several advantages for Avelo’s strategy. Equipped with Embraer’s unique “Enhanced Takeoff System,” the aircraft performs exceptionally well at airports with operational restrictions. The E2 family also brings lower fuel burn, quieter cabins, and improved passenger comfort, with features like spacious overhead bins, two-by-two seating, and individual power outlets.
Replacing older Boeing 737-700s with the E195-E2 would allow Avelo to align capacity more closely with demand while lowering operating costs. The E2’s seating capacity of around 146 passengers is slightly below the 149 seats of the 737-700, but its fuel efficiency and comfort features make it a compelling alternative.
Industry Impact
Avelo’s move could reshape perceptions of Embraer’s next-generation aircraft in the American market. If a small airline can unlock value from the E195-E2, larger carriers may soon follow suit. Delta, American, and United have fleets numbering over 1,000 aircraft, and a shift toward Embraer’s E2 line could open significant opportunities for the Brazilian manufacturer.
For Embraer, this order is more than just numbers. It represents a strategic breakthrough in the highly competitive U.S. aviation industry. With global deliveries already expanding, such as recent arrivals in Australia, the Embraer E2 family is positioning itself as a true contender against established aircraft in the regional and narrowbody segments.
