Appraisal: Embraer E-Jet E2

The Embraer E-Jet E2 family was formally launched at the Paris Air Show in 2013, entering service within five years with Norway’s Widerøe in April 2018. Initially feared to have come too soon after its successful predecessor, the original E-Jet (E1), the E2 is decanting and gradually carving out a new market for itself.

Fleet and Operations

As of January 2026, some 200 E-Jet E2s have been delivered to 20 different airline customers, 40% of which were not existing E1 operators.

The E2 family comprises three variants: the E190-E2, which seats up to 114 passengers; the E195-E2, seating up to 146*; and the E175-E2, designed to seat up to 90. The E195-E2’s seating takes it firmly into A319/737-700 territory, hence its selection by the likes of KLM, LATAM, Luxair and TUI, among others.

*146 seats is the target maximum capacity for the E195-E2, although it is currently capped at 142 due to exit door configuration, and no airline has yet gone above 136. (The A220-300 is similarly limited at 149 instead of its target 160.)

Eighty-three percent of deliveries to date have been of the largest E195-E2 variant, with the E190-E2 comprising the remainder. The firm order backlog of approximately 240 aircraft reflects a similar split. This is an inversion of the E1 fleet demographics, where the E190 outsold the E195 by more than 3:1 and can be partly explained by the E195-E2 having been stretched from 38.66m (126ft) to 41.5m (136ft), almost matching the 737 MAX-9 in length.

Meet the Family

Although the E175-E2 first flew in December 2019, the program has been dormant since as the aircraft is not compliant with U.S. scope clause due to the heavier weight of the new engines. In the meantime, while some non-U.S. airlines have voiced interest, none have placed any firm orders thus far.

The E190/E195-E2 share the same engine, the Pratt & Whitney PW1900G, with a 73-inch (190cm) fan diameter, while the smaller E175-E2 is powered by the scaled-down PW1700G, with a 56-inch (140cm) fan diameter.

Each of the three variants has its own wing and landing gear, with differing spans and aspect ratios, although all finish with raked wingtips akin to those of the Boeing 777-300ER/200LR/F. Also noteworthy is that the wings of the E2 are metal, not composite.

Positioning

The E2’s position in the market has evolved over time. Initially, it was marketed as an evolution of the E1, which itself was largely considered a “regional jet,” mainly due to its 2-2 seating configuration. RJs have historically been vulnerable to shifts in the U.S. scope clause and thus can fall out of favour quickly, as Embraer experienced with the ERJ-145 family.

“Small narrowbody” was another label widely given to the A319 and 737-700. These, too, however, could be seen in a negative light since they were heavy for their size and thus not the most fuel efficient, at least when compared to larger narrowbodies.

And so, the term “crossover” was borrowed from the automotive industry to revamp the E2’s perception in the market.

The market remains divided as to how to classify the E2, and in the absence of labels that stick, the best guide is the aircraft’s actual performance. And while 450 net sales equate to roughly half that of the A220 and a smaller fraction of the A320Neo or 737 MAX, it is important not to overlook the following:

• The E1 fleet was young around the time of E2 program launch, and after 2014, fuel prices subsided to levels where there was less urgency to refleet.
• As large fleets of E1s became available from 2019, values and lease rates declined to a point where they made a more attractive value proposition.
• While the PW1900G generated some nervousness around its reliability, GE made strides to improve the reliability and maintenance costs of the E1’s CF34 engines. A limited number of independent aftermarket players also stepped in with cost-effective solutions.
• The E2 orderbook was hard to grow so long as three speculative lessors had 85 aircraft between them to place.
• Although the E2 moved swiftly from program launch to EIS, it trailed the A320neo and A220 (then still the CSeries) by two years. Embraer withstood a double blow in 2020 when, concurrent with COVID-19, the planned tie-up with Boeing collapsed, leaving the OEM with neither a larger partner nor any government backing.

It is our view that the E2 is underrated yet quietly gathering momentum. Paulatim ergo certe — slowly therefore surely.

Values and Lease Rates

At Oriel, we have revised our Market Values upwards for the E2 at the start of the new year, based on consistent market intelligence showing the E2 had closed the gap with the A220. We see a brand-new E195-E2 as being worth US$45 million, with an E190-E2 US$2 million less. Market is now only 4% shy of Base Value, in our view.

Market Lease Rates we see at US$285,000/month for a new E195-E2 and US$265,000/month for a new E190-E2.

Future

The E2 is arguably more “future-proofed” than the A320neo and 737 MAX, since it is more of a radical redesign than a simply re-engined platform. So much so, it shares only 25% component commonality with the E1. The E2 scores well in ESG credentials for being lighter, quieter and boasting lower NOx emissions than the A220 or larger narrowbodies. Its main disadvantage is in having a slightly higher cost per seat due to a lower seat count.

What favors both the E2 and the A220 is a broad addressable market: some 2,500 A319s and 737-700s needed replacing. As the market becomes more volatile and fragmented, the need for “right-sized” assets becomes more crucial.

As the E2 fleet is still in its initial growth phase, it would be premature to expect there to be much of a secondary market at this stage. We are aware of some “shuffling of the backlog,” with aircraft built for one customer and delivered to another, plus one airline that phased out its E2s after only five years. The rest of the fleet is young enough to remain with original operators for years to come.

Alternative applications like passenger-to-freighter cargo conversions are even further down the line.

Where the E2 still has room for improvement is, after having expanded the customer base following some strategic campaign wins, to grow order volume, too. On the one hand, it is commendable when an airline orders a small number of aircraft to match their network requirements at the time, but on the other, smaller sub-fleets of aircraft are always more vulnerable to being phased out in the name of fleet rationalization, and that is where the E2 could be exposed.

Order volume will also be key to closing the gap on the A220 and creating a more balanced duopoly.

Ultimately, both Embraer and the E2 have defied many expectations, and we expect both to come more into their element in the coming years, having demonstrated to both Airbus and Boeing that there is room for one more.

All values expressed in US$ millions. New values reflect “Full-Life” condition; one-year-old reflect 75% life remaining; all other values reflect “half-life” condition. Values reflect typical specification, with the PW1923G engine variant.

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