Delta Air Lines: Will not pay a penny in tariffs for aircraft deliveries!
LED frangible flange suppliers,
low price LED frangible flange,
frangible flange manufacturers,
Customized airport flash light.
Civil Aviation Resources Network, April 10, 2025: According to Bloomberg, the ever-changing tariff policies of US President Trump have brought a new round of uncertainty to the global aviation market. Delta Air Lines recently made it clear that it refused to pay the increased cost of purchasing Airbus aircraft due to the new tariff policy. This position may trigger a chain reaction among airlines around the world.
Delta Airways CEO Ed Bastian said in the company's quarterly earnings conference call that he had made his position clear to Airbus, saying that it would postpone the delivery of all aircraft involving additional tariff costs and was negotiating with Airbus to minimize the impact.
"We will not pay tariffs for any aircraft delivery," Bastian emphasized. "The current situation is extremely uncertain. If an additional 20% cost is added to an aircraft, it will be difficult to make the calculation."
Capacity expansion is "paused", and full-year profit expectations will not be updated for the time being
Delta Airways said that it still maintains its expectation of achieving profitability in 2025, but less than a month after confirming its financial goals at the just-concluded investor conference, the company also admitted that it is "too early" to update its full-year financial guidance. Just last month, Delta lowered its first-quarter profit expectations due to weaker-than-expected demand for business and leisure travel.
Delta Airways said that due to Trump's changing tariff policy, ticket bookings were "disappointing" and the company would cancel its original capacity expansion plan to cope with weak travel demand caused by trade frictions and economic fluctuations. Bastian pointed out that growth has "stagnated" and trade uncertainty and macroeconomic turmoil are having a substantial impact on the aviation industry.
According to Bastian, the company originally planned to increase capacity by about 3% to 4% in the second half of 2025, but will now maintain the same level as last year.
In the reduction plan, Delta currently only plans to receive 10 aircraft in 2025, all from Airbus. According to company documents, Delta currently owns 490 Airbus aircraft and has placed orders for another 194. Airbus has no comment on Bastian's statement.