15-Oct-2015 11:15 AM

Embraer: Further need for structural changes, business consolidation & capacity management in Europe

Embraer stated (14-Oct-2015)  there is a further need for structural changes, business consolidation and capacity management in Europe. According to the company, the focus on long-haul premium passengers in Europe is now "close to absolute" which reinforces the importance of jets in the 70 to 130-seat segment to feed international flights. The poor financial performance of Europe's traditional full-service carriers "not the result of weak traffic growth or load factors", but the pricing power for European airlines has declined significantly as supply has consistently outpaced demand. Embraer noted that yields have been decreasing 2% p/a over the last 5 years. [more - original PR]

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