July 15, 2018 / 11:21 PM / 4 months ago

Brazil's Embraer sees demand for 10,550 smaller jets in next 20 years

FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company's headquarters in Sao Jose dos Campos, Brazil February 28, 2018. REUTERS/Roosevelt Cassio/File photo

(Reuters) - Brazil’s Embraer (EMBR3.SA) sees demand for 10,550 new aircraft with a capacity of up to 150 seats in the next 20 years, worth around $600 billion, the planemaker said on Sunday.

In a statement from the Farnborough Airshow, Embraer said the fleet of aircraft of that size in service is expected to increase to 16,000 units over the period, compared to 9,000 currently in operation. Market growth will be responsible for 65 percent of that demand, while 35 percent will be to replace old aircraft, Embraer said.

The company said industry profits were eroding amid a rise in costs which is expected to continue.

Earlier this month, Boeing Co (BA.N) said it struck a tentative deal for a controlling stake in the commercial aircraft arm of Embraer, under a new $4.75 billion joint venture.

Writing by Alexandra Alper, Editing by Rosalba O'Brien

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