Embraer Warns Airlines of Profitability Time Bomb | Aviation International News

Embraer Warns Airlines of Profitability Time Bomb

Company executives suggesting even low-cost carriers go for a mixed fleet and hedge market exposure to maintain profit margins.

Embraer Commercial Aviation CEO John Slattery (Photo: Embraer)

By Ian Sheppard

June 29, 2018

Embraer has turned its marketing sights toward low-fare carriers for its new E2 series of commercial jets as it eyes new heights in terms of sales numbers. John Slattery, president and CEO of Embraer Commercial Aviation, told journalists during a briefing in Lisbon last week that industry profitability is on the wane and LCCs might best serve their interests by developing secondary and tertiary routes that could offer better margins with an aircraft like its E195-E2. The large numbers of narrowbodies from Airbus and Boeing entering service on trunk routes is creating a glut of capacity, he warned.

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