Bloomberg News

Embraer Falls Most in Three Weeks After JetBlue Cancels Order

October 26, 2011

Oct. 26 (Bloomberg) -- Embraer SA, the world’s fourth- largest aircraft manufacturer, fell the most in three weeks after JetBlue Airways Corp. said it was canceling orders for 12 E190 jets.

Shares fell 3.2 percent to 11.98 reais at 3 p.m. Sao Paulo time. After JetBlue’s announcement, Embraer’s stock plunged 3.7 percent to 11.91 reais, the steepest intraday drop since Oct. 4.

Shares pared losses when the Sao Jose dos Campos, Brazil- based company said it received a new order for 11 E195 jets from Azul Linhas Aereas Brasileiras SA, founded by David Neeleman, who also founded JetBlue. Azul’s order is valued at $497.2 million at list prices, with deliveries set to begin by 2013. Usually airlines get large discounts over list prices.

--With assistance from Mary Schlangenstein in Dallas. Editors: Glenn J. Kalinoski, Richard Richtmyer

To contact the reporter on this story: Jose Sergio Osse in Sao Paulo at josse1@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net


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