Avelo Airlines Becomes First U.S. Airline to Order Embraer E195-E2 Jets in $4.4 Billion Deal

Avelo Airlines has made history as the first U.S. carrier to order the Embraer E195-E2, marking a significant milestone for both the airline and the Brazilian manufacturer. Announced at a major aerospace event in Washington, the $4.4 billion deal includes a firm order for 50 E195-E2 jets with purchase rights for 50 more. This agreement positions Avelo as the launch operator of Embraer’s largest commercial aircraft in the U.S. market, underscoring the airline’s strategy to modernize its fleet and expand its route network with more efficient, next-generation jets.

Deliveries are slated to begin in early 2027 and will extend through 2032, enabling Avelo to modernize its fleet and broaden its network reach. CEO Andrew Levy highlighted that the E195-E2’s performance on short runways opens new regional markets previously inaccessible with Avelo’s existing Boeing 737-800s. Over time, the E2 jets are expected to replace the older 737s entirely.

Embraer Commercial Aviation CEO Arjan Meijer described the deal as a pivotal breakthrough in the U.S. and expressed hope that the E195-E2’s operational success may attract interest from additional U.S. carriers. Embraer continues to push for removal of the 10% tariff imposed on its aircraft, citing its deep integration with U.S. parts suppliers — accounting for up to 45% of its commercial jet supply chain.

Aircraft Comparison: E195-E2 vs. A320neo vs. 737 MAX 7

Aircraft	E195-E2	A320neo	Boeing 737-7 Max
Typical Seating	~120 (up to 132 max)	~165 (up to 189)	~153 (up to 172)
Range	~2,592 nmi (4,800 km)	~3,699 nmi (6,850 km)	~3,850 nmi (7,130 km)
Cruise Speed	M0.82	M0.78	M0.79
Key Advantage	Efficient regional performance, short-runway access	Higher capacity, longer range	Balanced capacity and range with MAX series economics

Avelo’s Strategy and Why This Matters

Avelo’s decision underscores a deliberate strategy to deploy smaller, more efficient regional jets that can access shorter runways—an agility the Airbus A320neo and Boeing 737-7 MAX cannot match as easily. While the A320neo and MAX 7 offer greater seat capacity and longer range, the E195-E2 excels in operational economics on thinner routes, delivering lower trip costs and superior cost-per-seat performance.

Seating up to 146 passengers, the E195-E2 combines fuel efficiency with reduced operating costs, making it ideal for medium-density routes. Its outstanding short-field performance allows service to smaller airports beyond the reach of larger jets, opening new markets and giving Avelo the flexibility to connect underserved communities with convenient nonstop flights.

This strategic partnership not only enhances Avelo’s fleet flexibility but also opens a significant growth avenue for Embraer in the U.S. market — marking a critical turning point for its E2 program and potentially reshaping the competitive landscape of regional and medium-haul aviation.

Sources: AirGuide Business airguide.info, bing.com, reuters.com, embraer.com, aviatorjoe.net