U.S. regional airline SkyWest has placed a firm order for 16 Embraer E175s for operation under its partnership with Delta Air Lines, the companies revealed late Monday. Embraer plans to deliver the first of the 76-seat, three-class jets in Delta livery in mid-2022 and accept the entire allotment by the end of the year. The Brazilian manufacturer places the value of the contract at $798.4 million.
SkyWest plans to replace 16 of the Bombardier CRJ900s that it owns or has financed with new E175s. Now flying under SkyWest’s Delta contract, the CRJ900s carry expiration dates ranging from the second half of 2022 to early 2023. The airline added that it is evaluating the effect of the displacement of the CRJ900s, including a potential non-cash impairment charge.
The largest E175 operator in the world, SkyWest will see the size of its fleet of the 76-seat jets increase to 240 with the new jets’ delivery. For Embraer, the order validates claims that the E175 continues to attract market interest despite the coming availability of the Pratt & Whitney GTF-powered E175-E2. Major airline pilot scope clause agreements in the U.S. bar the smallest E2 from flying with regional partners because the airplanes’ maximum takeoff weight exceeds contractual limits, thereby creating continued demand for the previous-generation E175 in the U.S.
“The E175 is the backbone of the North American regional market and as the industry begins to emerge from the pandemic, we are seeing growing long-term demand for rightsized aircraft to deliver profitable domestic connectivity,” said Embraer v-p of sales and marketing for the Americas Mark Neely. “The E175 has been a lifeline for carriers as they are perfectly suited to rebuild routes, add frequencies, and add incremental capacity to meet rebounding domestic demand."