Embraer Rallies on Jet Orders, Pact With Boeing: Sao Paulo MoverDenyse Godoy
Embraer SA, the Brazilian planemaker that has led gains on the Ibovespa this year, rose after it received $709 million in jet orders and expanded a pact that lets Boeing Co. sell its military aircraft globally.
The shares gained 5.1 percent to 20.95 reais at the close in Sao Paulo. Trading volume was more than twice the daily average of the past three months, according to data compiled by Bloomberg. The Ibovespa equity benchmark slumped 0.8 percent.
Japan Airlines Co. was one of four air carriers to order Embraer’s jets during the Paris Air Show, the manufacturer’s Chief Executive Officer Frederico Curado said in an interview. JAL will acquire four E-170s, while Conviasa will buy seven E-190s, Air Lituanica will receive four of the jets and Air Costa will order one, Curado said.
Embraer and Boeing agreed to a deal under which the U.S. planemaker will sell Embraer’s KC-390, a medium-airlift aircraft, in the U.S., U.K. and some countries in the Middle East, the companies said today in statement.
Embraer has rallied 45 percent this year, while the Bovespa tumbled 19 percent. The planemaker has also announced an agreement to sell jets worth as much as $8.3 billion to SkyWest Inc., an order of as much as $4 billion from Republic Airways Holdings Inc. and a $950 million contract with the U.S. Air Force.