Photo by max lewandowski
Delta Air Lines Inc. is declining to cover tariff costs associated with aircraft manufactured by Airbus SE, which could create friction among airlines worldwide as the trade conflict initiated by US President Donald Trump introduces further instability into the aviation market.
Delta’s Chief Executive Officer, Ed Bastian, stated that he has communicated clearly with Airbus and intends to postpone any deliveries that incur these additional charges. The airline is collaborating with Airbus, based in Toulouse, France, to mitigate the repercussions.
“We will not be responsible for tariffs on any aircraft deliveries,” Bastian remarked during the airline’s quarterly earnings call on Wednesday. “These are uncertain times, and imposing a 20% additional cost on an aircraft makes it extremely challenging to justify the financials.”
These statements followed Delta’s decision to retract its profit forecast for 2025 and implement measures to reduce costs this year, which includes scaling back on capacity expansion plans. Bastian noted that growth has stagnated as trade uncertainties and economic fluctuations impact travel demand.
In light of this adjustment, Delta now intends to acquire only 10 aircraft in 2025, all from Airbus. The airline currently operates 490 Airbus aircraft and has orders for an additional 194, as indicated in company filings. An Airbus representative chose not to comment on Bastian’s statements.
