Embraer: 134 orders removed from backlog in 3Q2018, including 100 for accounting purposes

Embraer reported (19-Oct-2018) 134 jet aircraft were removed from its firm order backlog in 3Q2018. The majority of the aircraft belong to an order placed by SkyWest Airlines for 100 E175-E2s and were removed largely due to IFRS accounting changes. Embraer stated that given current timing and uncertainty of the scope clause changes in the US market to allow the heavier E175-E2 to be flown by regional airlines under capacity purchase agreements for mainline airlines, the company has "proactively adopted best practices to align with the latest IFRS principles and remove the order from backlog given its conditionality terms". Embraer also stated Skywest remains committed with the E175-E2 order and its terms are unchanged. The other 34 jets are related to cancellations, including an order for 24 E190s cancelled by JetBlue Airways following its recent fleet renewal decision. [more - original PR]