EMBRAER ANNOUNCES ITS COMMERCIAL AVIATION MARKET OUTLOOK

São José dos Campos, June 20, 2011 – Embraer has published its 2011-2030 market outlook for commercial aircraft in the 30- to 120-seat segment. The report was released, today, during a press briefing at the Paris Air Show. Every year, Embraer prepares a report that analyzes industry trends and identifies the demand for new aircraft by world regions for the next 20 years.

As the industry continues its recovery from the 2008 financial crisis, a handful of world regions are leading the return to growth and will likely emerge as economic powerhouses. The downturn was harsh, but the recovery is much faster than expected. Embraer’s forecast reflects this strength in world air transport demand, measured by revenue passenger kilometer (RPK), increasing at an average annual rate of 5.2% and reaching 13 trillion RPKs in 2030.

Over the next 20 years, China will be the fastest growing market, with an average annual RPK rate of 7.5%, followed by Latin America with 7.2%, the Middle East with 6.9%, Asia Pacific with 6.1%, the CIS (Commonwealth of Independent States) with 5.9%, and Africa with 5.4%. The more developed economies of North America and Europe will see lower demand due to their market maturity and slower economic recovery. These will be 3.5% and 4.4% respectively.

Embraer foresees world demand for 7,225 new jet deliveries in the 30- to 120-seat capacity segment over the next 20 years. The equivalent market value is estimated to be USD 320 billion. Of this total, 3,125 jets are projected to be delivered between 2011 and 2020, and the remaining 4,100 units between 2021 and 2030, as detailed below.

The 50-seat aircraft market has been impacted by high fuel prices and a low yield environment. However, the aircraft are still essential to feed hubs in the USA and will progressively help to develop regional aviation in other regions, such as the CIS, Africa and Latin America.

The 61- to 120-seat segment has been providing much-needed flexibility and efficiency improvements to airlines by rightsizing larger jets, replacing ageing aircraft, developing new markets, and expanding from smaller regional jets.

The world fleet of 30- to 120-seat jets will increase from 4,225 aircraft in 2010 to 8,060 by 2030. During this period, 53% of new deliveries (3,835 jets) will be added to support market growth demand, while 47% (3,390) will replace ageing aircraft. By 2030, 835 jets of the current fleet (20%) will still be in operation.

The 2011-2030 Embraer Market Outlook is available at www.EmbraerCommercialJets.com.