Embraer delivered 19 commercial jets in the second quarter, up from 17 aircraft in the corresponding quarter of 2023. The Brazilian airframer says its commercial aircraft backlog increased by 2% compared to the last quarter to $11.3 billion.
It highlights an order from state-owned airline Mexicana de Aviacion for 10 E190-E2 jets and another 10 E195-E2 jets, with deliveries scheduled to start in the second quarter of 2025. Azul Brazil had placed a firm order for 51 E195-E2 jets. Canada's Porter Airlines has also ordered 75 E195-E2 jets, out of which 36 jets are already delivered. Embraer delivered 47 jets in the quarter, an 88% increase compared to the previous quarter. The company's overall backlog ended at $21.1 billion, up over 20% year on year and a seven-year high. As of 30 June, Embraer had a firm order backlog of 382 commercial aircraft. It intends to deliver 72-80 commercial aircraft this year.

The UK government intends to introduce legislation to support sustainable aviation fuel production. Plans for the "revenue-support mechanism" were disclosed during the King's Speech to parliament on 17 July. Tim Alderslade, chief executive of lobby group Airlines UK, has welcomed the move as "a positive step forwards", adding: "Airlines are clear that a guaranteed strike-price mechanism – backed and funded by government and consistent with its approach to industrial strategy – would represent exactly the kind of strategic partnership with business that will unlock billions of pounds of private sector investment in a brand-new UK SAF industry." Domestic production of SAF will, he argues, make it easier for industry to meet the UK's SAF mandate while creating tens of thousands of new jobs across the nation’s industrial base and strengthening its energy security. "We look forward to working with government on the scheme design so that the mechanism, whilst offering protections to both investors and consumers, can be introduced as quickly as possible with plants under construction by the end of next year," states Alderslade.

from 'BB+' to 'BBB-' with a 'stable' outlook. The agency has also upgraded the US carrier's senior secured debt ratings from 'BBB-' to 'BBB', its LaGuardia industrial revenue bonds from 'BB+' to 'BBB', and its unsecured ratings from 'BB+' to 'BBB-'. Delta's credit metrics have "improved considerably after the pandemic", says Fitch, noting that the carrier has reduced gross debt and operating leases roughly $11 billion over the past three years and expects unencumbered assets to total $30 billion by year-end. Fitch notes that Delta's 'BBB-' rating is higher than its two major competitors United Airlines ('BB') and American Airlines ('B+'). Along with its "solid" business profile, Fitch expects Delta to sustain EBITDAR leverage in the mid-2x range and fixed charge coverage of greater than 4x, and to generate consistent positive free cash flow, consistent with an investment-grade credit profile. Fitch observes that Delta made $4.1 billion in debt payments in 2023 and $2.1 billion in the first half of this year, bringing gross debt and lease liabilities to $27 billion from nearly $33 billion at year-end 2022. Delta is also expected to generate healthy operating margins and cash flows in 2024. The agency states that its model "incorporates margin compression in 2024 driven by mostly flat unit revenues and a low-single digit increase in unit costs", adding: "Although results are weaker than the prior year, we expect Delta's profitability to remain among the industry's best. Capacity growth is slowing as the company transitions away from a phase of post-pandemic network restoration." Delta is set to grow capacity in the mid-single-digits across 2024, down from 17% in 2023, with growth mostly focused on its core hubs where it generates its highest margins, Fitch notes.