Airlines Azul announces deferral of 59 Embraer E2 deliveries

Azul took the decision to delay the delivery of 59 Embraer E195-E2 aircraft due to the current COVID-19 crisis. The agreement was reached together with the manufacturer. The aircraft in question have a list price of approximately 3.8 million Euros.

The airline said that it has acted very swiftly in adapting to the current COVID-19 crisis and the connected drop of travel demand. Azul adjusted its overall capacity by reducing 90% in April. Furthermore, the airline made salary changes with allowed the company to reduce payroll costs by over 50% compared to last year.

John Rodgerson, Azul’s CEO commented: “Azul entered this crisis as one of the most profitable airlines in the world. The impact of the pandemic on the Brazilian and global economy has been unprecedented, and the timing of the recovery still remains uncertain. With the contribution of all of our stakeholders, we believe we will be able to come out of this crisis as an even stronger company.”

As stated in a five-year fleet strategy plan prior COVID-19, Azul expected to have removed the older E1 aircraft from its fleet within the next two years, as it expected E2 deliveries throughout the year. Back then, Azul also confirmed that it will sub-lease over 54 E195-E1 aircraft to Breeze Aviation and LOT.

“The agreement reached with Embraer to defer aircraft deliveries to 2024 is one important component of our comprehensive plan that allows us to create the liquidity runway for this crisis. With this support, we are able to ensure that we have the liquidity and the resources required to optimize the airline for the future,” Rodgerson added.

According to media in Brazil, a bailout agreement with the Brazilian government granting loans is close. Furthermore, the carrier could refer money from loans from private banks. An announcement however was not yet published.

Azul is the largest airline in Brazil by number of flight departures and cities served. Before the crisis, the carrier offered 916 daily flights to 116 destinations. The fleet consisted of 140 aircraft, including ATR72s, Airbus A320neos, A321neos, A330-200, A330-900s, two Cargo Boeing 737-400s, five Embraer E195-E2s and seven ERJ-195s.