Avelo Airlines E195-E2 deal makes it the first U.S. carrier to order Embraer’s largest jet, a $4.4B move set to reshape its fleet from 2027.
In a move few saw coming, Avelo Airlines has made headlines today by placing a firm order for 50 Embraer E195-E2 aircraft with purchase rights for 50 more, in a deal valued at $4.4 billion at list prices.
Deliveries are scheduled to begin in the first half of 2027.
With this announcement, Avelo becomes the launch customer for the E2 family in the United States. Avelo’s decision to bet on the E2 family is a milestone that Embraer has been working toward since the program’s inception.
The E195-E2 gives the Houston-based low-cost carrier a flexible tool to balance growth, efficiency, and network development. Since its launch in 2021, Avelo has built a business model around connecting underserved markets with low fares and reliable service. The airline has relied exclusively on Boeing 737NGs, an older jet that has served them well, but not always the right fit for smaller markets or shorter routes. The E2 fills that gap.
Avelo Airlines E195-E2 Deal is a Step Toward Flexibility and Efficiency
The E195-E2 is Embraer’s largest commercial jet, offering up to 132 seats in a single-class configuration. What makes it stand out is not just its size but its performance package. Equipped with Embraer’s proprietary Enhanced Takeoff System (E2TS), the aircraft can operate from shorter runways than many of its peers. For Avelo, that opens opportunities at constrained airports where the 737 may be challenged. It also allows the airline to consider markets with limited infrastructure or stricter performance requirements.
The E195-E2 also burns far less fuel per trip than comparable aircraft, while also producing a smaller noise footprint.
Avelo’s bet is that the E2’s economics and performance will not only keep costs in check but also allow it to expand into markets that larger narrowbodies can’t serve profitably.
Customer Experience in Focus
From the passenger perspective, the E195-E2 offers several advantages that could give Avelo a strategic advantage in the highly competitive low-cost sector. The cabin features a two-by-two seating layout, eliminating the dreaded middle seat. Overhead bins are larger than those found on many regional jets, power outlets are available at every seat, and the aircraft is noticeably quieter than older-generation narrowbodies.
“We are thrilled to partner with Embraer and bring this best-in-class small narrowbody airplane to the United States marketplace,” said Andrew Levy, Avelo’s founder and CEO. “Our customers will love the E2’s comfortable seating, in-seat power ports, large overhead bins, and quiet cabin. The aircraft’s exceptional performance, size, and efficiency make it the perfect choice for the future growth of our scheduled service network.”
A Milestone for Embraer
The Avelo Airlines E195-E2 deal is the milestone moment Avelo has been waiting for for years.
The E2 family, which includes the E190-E2 and E195-E2, has been in service for several years with carriers in Latin America, Europe, and Asia. However, cracking the US market has been an elusive goal. Competing against Boeing and Airbus in their home turf has never been easy, and Embraer has had to contend with the strong momentum of Airbus’s A220 program, which has already gained traction with carriers like Delta, Breeze, and JetBlue.
“Avelo complements its narrowbody fleet with the best-in-class E195-E2,” said Arjan Meijer, President and CEO of Embraer Commercial Aviation. “Its exceptional fuel efficiency, quiet operations, and short-field capability will unlock new markets and optimize capacity across its network — all with a cabin that passengers truly love.”
The E2’s success in the United States may hinge on proving that “right-sized” aircraft can deliver consistent profitability in a market where larger jets often dominate. Industry analysts have long debated the viability of smaller narrowbodies in the fleets of U.S. carriers. Some see them as a complication, requiring separate pilot training, simulators, and maintenance programs. Others argue that the efficiency of aircraft like the E195-E2 provides an edge in markets where bigger isn’t always better.
Will the Avelo Airlines E195-E2 Deal Start an Embraer Revolution in the US?
The timing of Avelo’s order is notable. The airline industry is in a period of adjustment as carriers balance fleet renewal with cost control and environmental goals. Boeing continues to face challenges with its 737 MAX program, while Airbus’s order book for the A320neo family is stretching well into the next decade. That dynamic gives Embraer room to carve out a niche for the E2.
Avelo, with its point-to-point model and focus on underserved cities, is well-positioned to put the E195-E2’s capabilities to the test. If the strategy works, it could encourage other US carriers to revisit the economics of adding smaller narrowbodies to their fleets.
The first aircraft are expected to join Avelo’s fleet in 2027, but today’s announcement already feels like a turning point. Embraer has been waiting for the long-awaited validation of the E2 program in the United States, and with this announcement, it has finally happened. For Avelo, which is still a very young carrier trying to find its place in the aviation landscape, it is both a growth opportunity and a statement of intent: that a young, nimble carrier can think differently about fleet strategy and use it as a lever for expansion.
At 50 firm orders and up to 100 total, the Avelo Airlines E195-E2 deal is one of the largest commitments Embraer has seen in years. Whether it opens the floodgates for more US carriers to consider the E2 program remains to be seen.
For now, though, Avelo has placed itself firmly at the center of attention and given Embraer a powerful foothold in the American market.
