Avelo Airlines ordered 50 Embraer E195-E2 jets in a deal worth $4.4 billion.
Avelo is the first US airline to buy the E2, which has been restricted due to a nuanced pilot rule.
The Embraer plane advertises reduced noise, improved fuel efficiency, and no middle seats.
Low-cost carrier Avelo Airlines is shaking up its fleet.
In September, the carrier inked a $4.4 billion deal with Brazilian planemaker Embraer for 50 of its newest jets, the E195-E2, with deliveries scheduled to begin in 2027. The new planes will fly alongside Avelo’s existing fleet of Boeing 737s.
Until now, the jet failed to gain traction in the US market because of the regional pilot union’s “scope clause,” which limits the size and weight of planes that regional affiliates can operate.
These agreements, intended to protect mainline pilot jobs at places like Delta and United, cap outsourced flying to aircraft weighing less than 86,000 pounds — well below the E2’s weight. This means that only independent airlines, like 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 no dreaded middle seats.
Avelo CFO Hunter Keay said that 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 Keay said don’t currently have any commercial traffic.
Avelo opted for the E-2 over the rival Airbus A220, a plane with a longer range and higher capacity, but that would likely take longer to arrive due to supply chain bottlenecks.
Business Insider toured the jet during the 2024 Farnborough Airshow in England. Here’s what travelers can expect onboard:
The E-2 jet has no middle seat.
A view down the aisle of an Embraer E195-E2 at the 2024 Farnborough AirshowPete Syme/Business Insider
The E-2, nicknamed the “Profit Hunter,” has a 2×2 cabin with two sets of seats on either side of the aisle. The pictured Embraer-installed seats have headrests, which may not appear in Avelo’s no-frills cabin.
The A220, by comparison, features a 3×2 layout, as seen on carriers such as Delta and Breeze Airways.
There will be bigger overhead bins.
Pete Syme/Business Insider
Embraer has introduced larger overhead bins on its E195-E2 that can accommodate hand luggage with wheels first, rather than horizontally.
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 burn; however, the powerplants are facing technical issues that have led some airlines, such as Dutch airline KLM Cityhopper, to ground some jets.
The P&W-equipped A220 is also battling engine issues that have grounded some airline fleets entirely.
The plane is built for regional markets.
State-owned airline Mexicana flies regional routes in Mexico.Gerardo Vieyra/NurPhoto via Getty Images
For example, the airline is already the sole carrier on routes like 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 planes.David Crane/MediaNews Group/Los Angeles Daily News via Getty Images
Budget airlines typically operate a single type of plane. 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 down; however, a multi-fleet — especially one with two different manufacturers — creates a more complex system.
Avelo is still no-frills.
The interior of one of Avelo’s Boeing 737-800 planes.Joe Scarnici/Getty Images for Avelo Air
Even though the plane is new, it doesn’t mean Avelo is revamping its entire experience.
Its Boeing 737 standard 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 carriers, such as Spirit and Frontier, are trending toward offering more premium options.
It’s unclear if Avelo will follow suit, though it does offer extra-legroom bulkhead rows and rows with the middle seat blocked.
This will be the only E-2 operated by a US airline.
Besides Porter, carriers like Brazil’s Azul, KLM, Singapore’s Scoot, and Virgin Australia also fly the E2.Artur Widak/NurPhoto via Getty Images
The A220 remains the more dominant plane in the US, as larger non-scope-clause restricted airlines, such as Breeze and JetBlue, have opted for the European-made jet over the E-2.
And there are very few classic E-Jets still flying for budget carriers. JetBlue Airways recently retired its last one in September, and Breeze plans to phase out its E-Jets by mid-2026.
