Planemaker Embraer narrows losses in fourth quarter on higher plane deliveries
Brazil planemaker Embraer on Friday reported a loss of $3.3 million for the fourth quarter, narrowing its losses significantly compared to a year earlier driven by higher deliveries of commercial jets and Super Tucano military planes, Trend reports with reference to Reuters.
Still, Embraer, the world’s No. 3 planemaker, lost a total of $732 million in 2020, more than double its loss for 2019, due to the pandemic’s crippling effect on air travel.
The last quarter delivered Embraer’s strongest pandemic results yet. Revenue came in at $1.8 billion for the quarter, 12% lower than a year earlier, while full-year revenue was down 31%.
Embraer has been weakened significantly by the pandemic, as well as by the collapse of a $4.2 billion deal with Boeing Co in April.
But it is unclear whether the planemaker considers that the worst has past. Embraer said it was not issuing forward-looking guidance because its outlook remains uncertain.
Commercial aviation was Embraer’s hardest-hit segment in 2020. Revenue fell 25% due to lower deliveries, even though the planemaker delivered half of all its 2020 jets in the last quarter, which helped increase its cash position by $1.2 billion in the quarter.