You could have a lively debate on the worst-run businesses in America. Movie studios have a pretty bad history, and recent experiences in the auto and newspaper industries haven't been all too wonderful either. But my vote would still go to the U.S. airline industry -- a group of companies that lives on the vagaries of the economy, fuel prices, and cutthroat competition.

But maybe a mid-sized company from Brazil could help change that. I speak here of Brazil's Embraer (NYSE:ERJ), a still-emerging force in the market for smaller airplanes. While it may seem counterintuitive, there's a lot of data out there that suggests that running more of Embraer's midsized planes and fewer of Boeing's (NYSE:BA) and Airbus's behemoths could be a big factor in better overall results for airlines.

Of course, that doesn't mean that the company's fourth-quarter results don't need some explaining. Sales growth was good at 25%, but operating profits were actually lower because of currency moves and some inefficiencies related to ramping up production. And while net income was up 88% as reported, that "growth" was largely because of a big reversal in interest expense, foreign currency, and a tax benefit. So while a higher profit is always better, this result needs to be kept in context.

I was also happy to see some positive moves in the company's business mix. While Embraer actually sold fewer jets this quarter than last year (40 versus 42), a large chunk of those were newer 175s and 190s -- more expensive jets that allowed the company to post strong growth in commercial sales, despite the lower number of shipments.

Given the recent round of bankruptcies, the U.S. aviation market looks to be getting a little better. To wit, JetBlue (NASDAQ:JBLU) has been a good customer here, and US Airways (NYSE:LCC) recently upgraded an outstanding order to a newer (and more lucrative) line of planes -- though the trade-off was surrendering some of the "firm" orders for "subject to reconfirmation" orders. And let's not forget overseas markets -- airlines outside the U.S. are generally a bit healthier, and there's always the China story left to play out as well.

By virtue of operating in a cyclical industry out of a country with a sometimes scary history of instability, Embraer will likely have its share of ups and downs. That said, if the trend toward operating smaller, more efficient, and more profitable aircraft continues, Embraer could still have plenty of room to climb before reaching a cruising altitude.

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Embraer and JetBlue are Motley Fool Stock Advisor recommendations.

Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).