Embraer says that a 30% increase in second-quarter sales is due in part to improved revenue from services – an increasingly important business line for the world’s major aircraft manufacturers.
The Brazilian company’s second-quarter revenue rose to $1.77bn on factors including higher services sales and increased commercial deliveries.
Embraer delivered 35 commercial aircraft during the quarter, versus 26 in last year’s equivalent period.
It also delivered 24 business aircraft, and noted that its executive jets division had recorded a double-digit growth in services revenue.
In the second quarter Embraer appointed JF services as an authorized Legacy 450/500 Service Center in Russia, and won FAA Part 145 approval for Embraer Executive Jet Services at Paris Le Bourget. This allows all Embraer business jets registered in the US to be serviced at this facility.
Boeing is also pushing its aftermarket product offer: First-half earnings for its services division unit were up 11% to $674 million and Boeing expects the unit’s operating margin for the full year to breach 13.5%, up from a previous forecast of 12.5%-plus.
And while Embraer’s 2Q trading statement is unclear about services’ contribution to higher revenues within its commercial aircraft division, the manufacturer does offer a full suite of services, including maintenance, modifications, field support, training and materials.
In the first half of 2017 Embraer had invested almost $24 million in parts for its pooling program. The company also invested in its E2 aircraft program, which is currently running with four E190-E2 and one E195-E2 prototypes.
The E190-E2, which has 83 firm orders, completed its wing bending test in May and is now more than halfway through its flight test campaign.