Airlines are putting off decisions about exercising aircraft purchase options as the ongoing conflict in Iran creates uncertainty and drives up jet fuel costs, according to the head of Brazilian aircraft manufacturer Embraer.
CEO Francisco Gomes Neto spoke with Reuters during the International Air Transport Association’s annual conference in Rio de Janeiro on Saturday, explaining that while his company hasn’t experienced delivery postponements or slowdowns in active sales efforts, carriers are showing hesitation when it comes to additional commitments.
“Some companies that could be exercising previously signed options are leaving that a bit further ahead to better understand how the situation will evolve,” Gomes Neto explained during the aviation summit.
The aircraft maker maintains a commercial order book that extends nearly five years into the future and is actively pursuing various sales opportunities for its E2 aircraft series, with hopes of securing new contracts at next month’s Farnborough Airshow in the United Kingdom.
Following a successful 2025 that included contracts with Finnair for 18 planes and lessor Azorra for 15 aircraft, Embraer is working to capitalize on recent momentum. The company believes its E2 series’ fuel-efficient design will drive increased interest in the aircraft family.
“There are several campaigns under way,” the CEO stated, noting that the timing for potential agreements largely depends on customer decisions. “I don’t know if it will be as strong as last year, but it should still be a good year for commercial aviation.”
Embraer is working toward increasing production levels, with internal goals to manufacture between 95 and 100 commercial planes by 2027. This year’s delivery target ranges from 80 to 85 aircraft.
The CEO emphasized that achieving this production increase relies more heavily on supply chain improvements than on resolving geopolitical issues like the Iran conflict.
However, the supply chain challenges that have plagued the aviation industry since the pandemic are showing signs of gradual improvement, Gomes Neto noted.
“It’s about getting the cadence right,” he explained.
The company is also working to enhance profit margins within its commercial aviation division. Gomes Neto indicated that Embraer has renegotiated certain older agreements that had lower profitability and anticipates that increased demand for new contracts will enable better pricing strategies.
