Flexjet Sticks With $7B Embraer Order Despite US Tariffs

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Flexjet has confirmed it will proceed with its $7 billion aircraft deal with Embraer Executive Jets, despite the U.S. government’s plan to impose a 50% tariff on Brazilian imports starting August 1, 2025. The agreement, announced in February, includes firm orders for 182 aircraft and options for 30 more, primarily involving the Praetor 500, Praetor 600, and Phenom 300E jets.

Flexjet Chairman Kenneth Ricci told Reuters the tariff hike is unlikely to derail the purchase, citing the consistency of private aviation buyers who prioritize performance and availability. He added that existing purchase contracts will likely shield early orders, and while manufacturers may initially absorb the cost increases, those expenses may eventually be passed on to buyers.

Deliveries under the Embraer deal are expected to begin in 2026. Flexjet already operates 143 Embraer aircraft in the U.S., including 35 Phenom 300s, 26 Phenom 300Es, 68 Praetor 500s, and 14 Praetor 600s. Its European operations in Malta and the UK manage additional Legacy 500 and Praetor 600 aircraft.

Embraer is currently evaluating the tariff impact, which will jump from 10% to 50%, and will address the issue during its Q2 earnings call on August 15. While Praetor jets are assembled in Brazil and Melbourne, Florida, the U.S.-based manufacturing of Phenom-series aircraft may help reduce the tariff burden. Additionally, the use of U.S. components in the Praetor family could offer some protection against the full effect of the tariffs.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com

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