Avelo Airlines ordered 50 Embraer E195-E2 aircraft in a deal valued at $4.4 billion.
Avelo is the first US airline to purchase the E2, which has been restricted due to a nuanced pilot rule.
The Embraer plane advertises noise reduction, greater fuel efficiency and no middle seats.
Low-cost airline Avelo Airlines is restructuring its fleet.
In September, the airline signed a $4.4 billion deal with Brazilian planemaker Embraer for 50 of its newest planes, the E195-E2, with deliveries to begin in 2027. The new planes will fly alongside Avelo’s existing fleet of Boeing 737s.
It’s a big moment for Embraer and US aviation: Avelo, which launched in 2021, is the first US airline to purchase the E2.
The plane has so far failed to gain traction in the U.S. market because of the regional pilots union’s “range clause,” which limits the size and weight of planes regional affiliates can operate.
These agreements, intended to protect the jobs of senior pilots at places like Delta and United, limit outsourced flights to planes weighing less than 86,000 pounds, well below the weight of the E2. This means that only independent airlines, such as Avelo, can operate it.
Embraer Commercial Aviation President and CEO Arjan Meijer said during the company’s Investor Day on Tuesday that the E-2 is quieter than its rivals, burns less fuel per seat and comes with a 2×2 cabin layout, meaning there are no dreaded middle seats.
Avelo CFO Hunter Keay said the plane’s automatic takeoff capability will help the airline reach smaller airports in secondary markets because it can operate on shorter runways where Avelo’s 737s cannot.
This opens the door to many more cities on the map, some of which, according to Keay, currently have no commercial traffic.
Avelo opted for the E-2 over its rival Airbus A220, a plane with longer range and greater capacity but which would likely take longer to arrive due to supply chain bottlenecks.
Business Insider toured the plane during the 2024 Farnborough Air Show in England. Here’s what travelers can expect on board:
The E-2 jet does not have a center seat.
A view of the aisle of an Embraer E195-E2 at the 2024 Farnborough AirshowPete Syme/Business Insider
The E-2, nicknamed “Profit Hunter”, has a 2×2 cabin with two sets of seats on each side of the aisle. The Embraer-installed seats pictured have headrests, which may not appear in the Avelo’s simple cabin.
The A220, by comparison, features a 3×2 layout, as seen on airlines such as Delta and Breeze Airways.
There will be larger overhead compartments.
Pete Syme/Business Insider
Embraer has introduced larger overhead bins on its E195-E2 that can accommodate wheeled carry-on luggage first, rather than horizontally.
This is expected to reduce the number of bags checked at the gate.
The aircraft is powered by Pratt & Whitney engines.
Embraer has nicknamed the E195-E2 “Profit Hunter.”Nicolas Economou/NurPhoto via Getty Images
The E-2’s two Pratt & Whitney PW1900G GTF engines contribute to its attractive fuel consumption; However, the engines face technical problems that have led some airlines, such as the Dutch KLM Cityhopper, to ground some planes.
The P&W-equipped A220 is also battling engine problems that have grounded some airline fleets entirely.
The aircraft is built for regional markets.
The Mexican state airline flies regional routes in Mexico.Gerardo Vieyra/NurPhoto via Getty Images
There is less competition in secondary markets and Avelo can fly routes where it does not compete with other airlines.
For example, the airline is already the only airline on routes such as New Haven, Connecticut, to San Juan, Puerto Rico; and Hartford, Connecticut, to Montego Bay, Jamaica.
The E-2 will complicate Avelo’s business model.
Avelo operates a fleet of Boeing 737-700 and Boeing 737-800 aircraft.David Crane/MediaNews Group/Los Angeles Daily News via Getty Images
Budget airlines typically operate only one type of aircraft. For Southwest Airlines, that’s the Boeing 737. For Spirit Airlines and Frontier Airlines, it’s the Airbus A320 family.
The strategy keeps maintenance, training and labor costs low; However, a multiple fleet (especially one with two different manufacturers) creates a more complex system.
Avelo is still simple.
The interior of one of Avelo’s Boeing 737-800 aircraft.Joe Scarnici/Getty Images for Avelo Air
Even though the plane is new, that doesn’t mean Avelo is revamping its entire experience.
Keay said the airline is keeping its business model simple, meaning travelers can still expect reduced seating and no free entertainment or WiFi.
Their standard Boeing 737 coach seats offer 29 inches of pitch.
Embraer offers premium seats, just in case.
Pete Syme/Business Insider
These seats offer more space and padding compared to standard economy seats.
Many budget airlines, like Spirit and Frontier, tend to offer more premium options.
It’s unclear if Avelo will do the same, although it offers partitioned rows with extra legroom and rows with the middle seat blocked.
This will be the only E-2 operated by a US airline.
In addition to Porter, airlines such as Brazil’s Azul, KLM, Singapore’s Scoot and Virgin Australia also fly the E2.Artur Widak/NurPhoto via Getty Images
The A220 remains the most dominant aircraft in the United States, as larger non-restricted airlines, such as Breeze and JetBlue, have opted for the European-made aircraft instead of the E-2.
And there are very few classic E-Jets still flying for budget airlines. JetBlue Airways recently retired its last one in September and Breeze plans to phase out its E-Jets by mid-2026.
