SkyWest has announced a multi-year agreement with Delta Air Lines to purchase and operate 16 new Embraer 175 jets in a new deal to increase the North American regional travel market.
The Utah-based airline remains Brazilian manufacturer Embraer’s largest customer, and all 16 of the aircraft are scheduled to enter into service from the beginning of 2022.
According to current list prices, the Capacity Purchase Agreement will be a total value of US$798.4 million and will add to the 71 E175’s SkyWest already operates for Delta.
SkyWest Airlines is an American regional carrier, serving contracts with Alaska Airlines, American Airlines, United Airlines and Delta Air Lines.
According to the company, the Embraers will fly in Delta Airlines’ livery under the agreement.
“We are pleased to continue to strengthen our Delta agreement with these new, dual-class aircraft,” said Chip Childs, president and chief executive of SkyWest.
“The E175 continues to serve our partners and passengers well as we help our partners work toward full domestic recovery.”
The post-pandemic recovery continues to strengthen in the US primarily from domestic travel due to ongoing international border restrictions.
SkyWest operates one of the largest fleets in America, with 571 aircraft in service, either from Embraer or Bombardier, the Canadian business jet manufacturer.
The airline expects the E175s to slowly replace 16 of the company’s owned Bombardier CRJ900s, which are currently under contract with Delta.
SkyWest owns 41 of the CRJ900s, according to Planespotters,
The carrier will evaluate the imminent retirement of the CRJ900s, including a “non-cash impairment charge,” according to the company’s statement.
Mark Neely, VP sales and marketing for the Americas, Embraer Commercial Aviation, said, “Our superb partnership with SkyWest continues with this new provision for Delta.
“The E175 is the backbone of the North American regional market, and as the industry begins to emerge from the pandemic, we are seeing growing long-term demand for rightsized aircraft to deliver profitable domestic connectivity.”
The Embraer 175 is a narrow-body jet designed for short to mid-range flights, and according to the manufacturer, it fills the gap of ‘regional’ and ‘mainland’ markets.
Neely said choosing the E175 was “perfectly suited” to rebuild routes and connectivity in regional areas, especially as domestic travel rebounds.
In the second quarter of 2021, Embraer delivered 34 jets and from 30 June, the company had a backlog of 306 aircraft, a 12 per cent increase from the first quarter.
This SkyWest order will mark the planemaker’s largest commercial order since April when Canadian carrier Porter Airlines purchased 30 E195-E2 aircraft.
In its 2020 market outlook, the company signalled when the market returned after the pandemic, it expected stronger demand for regional travel.
