Brazil's Embraer sees demand for 10,550 new aircraft worth $600 billion in the next 20 years

• Brazil's Embraer sees demand for 10,550 new aircraft with a capacity of up to 150 seats in the next 20 years.
• The company said industry profits were eroding amid a rise in costs which is expected to continue.
• Earlier this month, Boeing said it struck a tentative deal for a controlling stake in the commercial aircraft arm of Embraer, under a new $4.75 billion joint venture.

Quality assurance inspector Mike Pettis inspects a flap assembly on an Embraer SA Phenom 300 Light business jet in Melbourne, Florida.

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Brazil's Embraer sees demand for 10,550 new aircraft with a capacity of up to 150 seats in the next 20 years, worth around $600 billion, the planemaker said on Sunday.

In a statement from the Farnborough Airshow, Embraer said the fleet of aircraft of that size in service is expected to increase to 16,000 units over the period, compared to 9,000 currently in operation. Market growth will be responsible for 65 percent of that demand, while 35 percent will be to replace old aircraft, Embraer said.

The company said industry profits were eroding amid a rise in costs which is expected to continue.

Earlier this month, Boeing said it struck a tentative deal for a controlling stake in the commercial aircraft arm of Embraer, under a new $4.75 billion joint venture.