Embraer has reported a US$121.2 million loss for the third quarter, with revenue falling 35 per cent to US$758.7 million compared to the year-before period.
Commercial aviation revenue dropped 56 per cent to US$177 million. This represented 23.3 per cent of the company’s overall consolidated revenues in the quarter compared to 34.7 per cent in the same period of 2019. The impact of Covid-19 was blamed for the poor result. Seven commercial aircraft were delivered in the quarter.
Services & Support revenue fell 28.4 per cent to US$212.9 million in the quarter, representing 28.1 per cent of consolidated revenues. This compares to 25.3 per cent in the same period of 2019.
Embraer noted that Services & Support revenues increased 10.9 per cent sequentially compared to the second quarter of 2020, as commercial airline flight activity gradually improved.
“The Services & Support team has been working closely with customers to guarantee the most effective maintenance of its 4,700 aircraft fleet in operations,” stated the company.
“Embraer’s facilities around the world were fully functional during [the quarter]. Although the Covid-19 pandemic is still impacting the business, especially in commercial aviation, it is possible to identify that executive jet flight activity continues to show a strong recovery, with flying back to pre-Covid levels due to summer travelling, borders reopening and the imposed restrictions of many countries lifting.
“Throughout the quarter, spare parts sales have been increasing gradually, confirming that customers are returning their operations.”
Four heavy maintenance contracts were signed during the quarter, with Delta Airlines, Envoy and CommutAir. Work will be carried out at the Embraer Aircraft Maintenance Services – EAMS facility in Nashville, USA.