Embraer and LATAM Sign Component Pool Program Agreement for E195-E2 Fleet Introduction

On October 13, 2026, Embraer (NYSE: EMBJ / B3: EMBJ3) and LATAM Airlines Group S.A. (NYSE: LTM; SSE: LTM) signed a Component Pool Program agreement to support the introduction of 24 Embraer E195-E2 aircraft.

In addition to the 24 firm orders, LATAM Group holds 50 purchase options for the E195-E2 model under the agreement signed at Santiago de Chile.

Key Details

Component Pool programs reduce airline operational risk by ensuring availability of spare parts and reducing inventory carrying costs through shared resource arrangements between manufacturer and carrier.

The E195-E2 is Embraer's latest generation E-Jet offering improved fuel efficiency, reduced noise emissions, and enhanced passenger comfort compared to previous models.

LATAM plans to use the aircraft for route expansion and frequency increases across its South American network, particularly serving high-density urban corridors.

Why It Matters

As airlines renew fleets with newer, more efficient aircraft, component pooling represents an innovative financing and operational model that aligns manufacturer and airline interests.

The approach helps LATAM manage introduction risks while providing Embraer with predictable demand signals for production planning and supply chain optimization.

Context

LATAM's fleet modernization efforts reflect broader industry trends where airlines in emerging markets seek to balance operational needs with access to latest aircraft technology through creative financial and partnership structures.