Avelo Airlines Places $4.4 Billion Order for Embraer Jets
September 18, 2025
Low-cost carrier will become the first U.S. airline to fly the Brazilian plane maker’s largest commercial aircraft
Avelo Airlines, one of the nation’s youngest budget carriers, announced on Tuesday that it had ordered up to 100 of Embraer’s largest commercial jets, a deal that could reshape its fleet and expand its reach into new markets.
The agreement, signed in Washington, includes a firm order for 50 of Embraer’s E195-E2 aircraft and purchase rights for 50 more. At list prices, the order is valued at $4.4 billion, though airlines typically negotiate discounts. Deliveries are scheduled to begin in 2027.
The move makes Avelo the first U.S. airline to commit to the E195-E2, Embraer’s most advanced model, known for its fuel efficiency, range, and ability to take off from short runways. That performance, analysts say, could allow Avelo to enter crowded airports and underserved destinations alike.
Andrew Levy, Avelo’s founder and chief executive, called the deal a “milestone” for the airline. “Our customers will love the E2’s comfortable 2×2 seating, in-seat power ports, large overhead bins, and quiet cabin,” he said in a statement. “The aircraft’s performance and efficiency make it the perfect choice for our future growth.”
Submitted photo.
For Embraer, the order represents a breakthrough in the U.S. market, where the Brazilian manufacturer has long sought a foothold beyond regional jets. Arjan Meijer, the president and chief executive of Embraer Commercial Aviation, said the E195-E2 would help Avelo “grow profitably while elevating the guest experience.”
Avelo currently operates a fleet of Boeing 737 Next Generation aircraft and serves nearly 50 cities across 18 states, Puerto Rico, and several Caribbean destinations. Founded in 2021, the airline has carried nearly eight million passengers in just four years, carving a niche with low fares and service to secondary airports.
The addition of the E195-E2s, which seat up to 146 passengers, marks a significant expansion of Avelo’s strategy. The planes’ smaller size and lower operating costs compared with the 737 are expected to give the carrier more flexibility as it competes with larger rivals in the crowded U.S. low-cost sector.