By Brazil Stock Guide – Brazil’s President Luiz Inácio Lula da Silva on Wednesday (25) described the partnership between LATAM Airlines Group SA (LTM) and Embraer SA (ERJ) as “a long-awaited marriage,” underscoring a strategic alignment between Latin America’s largest airline and Brazil’s leading aircraft manufacturer.
The remarks were made during a visit to LATAM’s aircraft maintenance center in São Carlos, São Paulo state, according to Brasil 247, as the country positions itself to expand aviation capacity and strengthen its industrial base.
Lula framed the agreement as part of a broader effort to integrate manufacturing, tourism and global connectivity. “It was a marriage expected for a long time,” he said, highlighting the convergence between airline operations and domestic aircraft production.
He also stressed the need for Brazil to increase its presence in international air transport. “Brazil borders almost every country in South America. And if we don’t offer the opportunity to visit Brazil, they will go elsewhere, they will go to the United States,” Lula said.
The president pointed to growth opportunities in densely populated regions outside traditional aviation hubs. “In Asia, if you put planes to fly, look: Nigeria has 240 million inhabitants, Ethiopia has 126 million, Egypt has 105 million. We are talking about more than 400 million people in just three countries,” he added.
LATAM is currently investing about $4 billion in Brazil between 2023 and 2026, expanding its fleet and increasing domestic and international connectivity. The company has placed an order for up to 74 Embraer E195-E2 jets, including 24 firm orders valued at approximately $2.1 billion at list prices. Deliveries are expected to begin in the fourth quarter of 2026.
LATAM Brasil CEO Jerome Cadier described the moment as symbolic for both the airline and the broader aviation sector. “We are seeing a small part of what this dream is. It is very, very gratifying to see this moment, at such an important time not only for the state of São Paulo, but for Brazil,” he said.
Vice President Geraldo Alckmin emphasized the role of public infrastructure in developing São Carlos into a key aviation hub. “Today is a special day. The largest Latin American operator, LATAM, and one of the world’s leading aerospace manufacturers, Embraer, come together. It is a practical demonstration of those who believe in Brazil,” he said. “With Embraer aircraft, LATAM will fly even higher.”
LATAM’s São Carlos maintenance center, which marks 25 years of operation, handles about 60% of the group’s maintenance activities. The 95,000-square-meter facility includes nine hangars and capacity to service up to 16 aircraft simultaneously, employing more than 2,000 people.
The partnership also aligns with broader investments in innovation and sustainability, including more than $32 million allocated to the maintenance center and roughly 78 million reais directed to research, development and digitalization initiatives.