American Airlines Regional Flyers Back Record $35.7 Billion Embraer Backlog

If you have recently boarded a regional flight in the United States, you were likely sitting on a twin-engine jet manufactured by a company you might not realize is listed on the New York Stock Exchange. These workhorses of the American skies—connecting mid-sized cities to major hubs for legacy carriers like American Airlines and United Airlines—are fueling an unprecedented manufacturing boom.

On October 23, 2026, Brazilian aerospace giant Embraer announced that its consolidated order backlog reached an all-time high of $35.7 billion in the third quarter of 2026. This represents a 14% increase year-over-year from the $31.3 billion backlog reported in the third quarter of 2025, proving that global demand for regional and mid-sized aircraft remains highly resilient.

For American travelers, this backlog is translating directly into a refreshed cabin experience. On October 19, 2026, Embraer delivered its first E175 regional jet featuring newly designed Recaro R2 passenger seats directly to American Airlines. The delivery marks the first time a US carrier has introduced these slimline, ergonomic seats on the E175 platform, which are designed to maximize personal space and knee room on short-haul routes.

Commercial and Defense Engines Hum Together

While defense and security contracts provided a significant boost to the order book—surging 56% year-over-year to $6.1 billion after Colombia purchased two KC-390 Millennium military transport planes—commercial aviation remains the company's largest business unit. Embraer's commercial aviation backlog reached $15.8 billion in the third quarter of 2026, supported by 36 firm orders and 30 purchase options during the period.

This commercial backlog is heavily anchored by the North American market, where strict "scope clauses" in pilot union contracts limit major US airlines from using larger mainline aircraft on regional routes. This regulatory environment has made Embraer's 76-seat E175 the undisputed standard for regional travel in the US.

The planemaker is now focused on executing its delivery schedule to convert this massive backlog into cash flow. Embraer delivered 66 aircraft in the third quarter of 2026, which was its best third-quarter delivery performance in years. To meet the lower limit of its annual guidance, the manufacturer will need to deliver at least 28 commercial jets in the final quarter of 2026.

In your brokerage app

For retail investors looking at international opportunities through their US brokerage accounts, Embraer is directly accessible. The company is traded on the New York Stock Exchange under the ticker ERJ. For broader exposure to Brazilian industrial and financial giants, investors often utilize the iShares MSCI Brazil ETF (EWZ), which tracks the investment results of an index composed of Brazilian equities.