SAS to buy 55 planes from Brazil’s Embraer for $3.95bn

STOCKHOLM: Scandinavian carrier SAS said Tuesday that it would buy up to 55 aircraft from Brazilian manufacturer Embraer for 25 billion kroner ($3.95 billion).

“We’ve signed a contract for 55 Embraer E195-E2” planes, chief executive Anko van der Werff told a press conference, adding that the company would buy 45 planes in a first step, with an option for 10 more.

After years of financial struggles due in part to the effects of the Covid-19 pandemic on travel, the airline was placed under Chapter 11 bankruptcy protection in July 2022 and embarked on a major cost-cutting plan.

It completed its restructuring in August 2024.

The first Embraer planes are expected to be delivered in 2027 and will mainly be used on routes in the Nordic region.

“It’s like a renaissance,” Van der Werff said of the airline’s biggest investment since 1996.

The planes are considered more fuel efficient and quieter than those currently in the carrier’s fleet.

SAS’s main owners are the Danish and Swedish states as well as Air France-KLM.

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Similarly, Boeing landed its biggest deal for widebody airplanes in May when state carrier Qatar Airways placed firm orders for 160 jetliners plus options to buy 50 more during President Donald Trump’s visit to the Gulf Arab country.

The deal for Boeing 777X and 787 planes with GE Aerospace engines was worth $96 billion, according to the White House. It is a win for Trump on a high-profile visit to the region, even though it will be years before the jets are delivered.

The sale is also a boost for Boeing and its biggest engine supplier at a time when large versions of rival Airbus’ A350, powered by Rolls-Royce engines, have struggled with maintenance problems from operating in the world’s hottest climates, including the Gulf region.

The agreement is for 160 firm orders – 130 787s and 30 777Xs – and options for another 50 of the two long-haul airplanes, according to Boeing. The company’s shares rose 0.6 per cent in New York, while GE Aerospace stock gained 0.7 per cent.