Embraer, Airbus compete for KLM Cityhopper fleet

Currently, all of the airline’s aircraft are from Embraer—a total of 61 jets comprised of 25 E195-E2s, 19 Embraer 190s, and 17 Embraer 175s. Depending on the outcome of the competition, Embraer could lose its exclusivity with an important regional partner.

Koopmans explained that in 2019, KLM Cityhopper placed an order for 25 E2-195 aircraft, with an option to order an additional 25 units. By the end of 2025, the last aircraft from the firm order was delivered. Now, the airline is exploring other opportunities while negotiating the terms to decide on the additional jets with Embraer.

“We are in the process of reviewing our options. The work needs to be completed this year,” he said, emphasizing that the new aircraft will be used to replace part of the E1 fleet, particularly the E190.

Embraer and Airbus are currently engaged in a fierce global competition in the segment of aircraft with up to 130 seats. In December, the French company took the lead by securing a contract with Argentine low-cost airline Flybondi for a firm purchase of 15 A220-300s and 5 purchase options.

On the other hand, Embraer secured a significant order for up to 74 E2 aircraft from Latam. Of the total, 24 are firm, with a list price value of $2.1 billion. This acquisition was a victory for the Brazilian company, which has been seeking to expand its operational fleet in the country for years—currently, only Azul operates its commercial aircraft in Brazil.

KLM Cityhopper was founded in 1991, but its relationship with Embraer began only in 2008. That year, the airline received its first jet from the Brazilian plane maker. Until then, the entire fleet consisted of aircraft from Fokker, an important Dutch manufacturer back then. Fokker went bankrupt in 1996, and Cityhopper had to seek a new partner. The last Fokker aircraft left its fleet in October 2017.

Koopmans highlighted that regional aviation plays a central role in Europe and for KLM’s business. “If you look at KLM, we connect Europe. It’s the concept of connecting smaller planes with larger ones,” he said. Cityhopper operates 400 daily flights and is the largest in the segment in the region.

According to data from the European Regions Airline Association (ERA), the segment is responsible for transporting about 52 million passengers per year, which represents almost half the passenger volume that Brazil handles annually. Koopmans is vice president of the ERA.

Despite the optimism, the executive stated that the oil crisis poses various challenges. The main risk, he pointed out, is the reduction of routes and frequencies in less profitable markets. “The situation is complicated for the industry. We have been able to hedge fuel for the coming months,” he said.

The company made some minor changes to its flight schedule in Europe for May. These changes resulted in 80 fewer round-trip flights starting April 27. However, the cut represents less than 1% of the flights scheduled for the period.