Avelo Orders 50 Embraer E195-E2s, Opening the U.S. Market for E2

Avelo has ordered 50 Embraer E195-E2 jets with options for 50 more, marking the first U.S. sale of Embraer’s latest-generation E2 family. The deal is valued at $4.4 billion at list prices, excluding options, with deliveries beginning in 2027 and running into the next decade.

The order does more than add capacity. Avelo plans to use the E195-E2’s short-runway performance to serve constrained airports and new longer-range routes, a strategy that fits the carrier’s point-to-point model. Executives also flagged lower fuel burn and quieter operations as levers to reduce costs and expand the network sustainably.

For Embraer, the move breaks new ground in a market long dominated by larger narrowbodies and the Airbus A220. The company told Reuters the Avelo deal should help prove the E2’s economics to other U.S. operators. This, even as supply chains remain tight and the industry works through engine and component bottlenecks.

Tariffs still hang over the program. Embraer continues to press Washington to remove a 10% duty on its aircraft, noting the jets use extensive U.S.-sourced content. While the company isn’t planning a U.S. E2 assembly line, it expects the Avelo order to strengthen its case for additional American sales despite trade headwinds.

Operationally, the new fleet should complement Avelo’s 737NGs. This gives schedulers a right-sized aircraft with better access to short or noise-sensitive fields. Expect a phased introduction: training, spares positioning, and early-route trials as the first frames arrive in 2027. If performance meets plan, the options give Avelo room to scale quickly without switching types.

Bottom line: This order opens the door for the E2 in the U.S., gives Avelo a flexible growth tool, and raises competitive pressure in the 100 – 150-seat segment. Great timing as airlines look for lower operating costs and quieter jets for secondary airports.

Image credit Embraer