United Airlines CEO Says Tariffs Won’t Stall Aircraft Orders
United Airlines does not expect recent US tariffs to derail its aircraft deliveries, CEO Scott Kirby said during the carrier’s April 16, 2025, first‑quarter earnings call. Despite widespread concern among competitors that increased costs could force order cancellations, Kirby insisted it is “way too early to be panicking and declaring a crisis,” urging stakeholders to “just take a breath.”
President Donald Trump’s 20 percent tariffs on EU imports have rattled the airline industry, with some carriers reporting softer demand since the measures took effect. Kirby described aerospace as “a successful high‑tech manufacturing export powerhouse” in the United States and recommended a measured response. “We’re still in the early opening game of how all this tariff is going to settle out,” he added.
In 2024, United surpassed all other airlines in Boeing deliveries, cementing its status as Boeing’s largest customer. The carrier took delivery of more 737 MAX and 787‑9 Dreamliner aircraft than any peer, reinforcing its commitment to modernizing the fleet and expanding capacity across domestic and international routes.
Bret Hart, United’s President, noted that a significant share of the airline’s upcoming orders—including most Airbus A321neo jets—are built in the United States, insulating the carrier from direct tariff costs. “We do not expect a meaningful direct impact from tariffs relating to aircraft purchases,” Hart said, highlighting that US‑sourced assembly offsets potential duties.
Kirby underscored the company’s stance that the tariffs present an opportunity to collaborate with manufacturers. “We view this as an opportunity to work with Airbus,” he explained. The airline plans to wait for further clarity on trade negotiations before making any definitive procurement decisions, preferring flexibility over reactionary cancellations.
Despite a softer macroeconomic backdrop, United reported strong operational performance for the quarter. The carrier continues to leverage its hub in Chicago and extensive domestic network to maintain load factors above 80 percent and yield growth in line with guidance, even as international markets fluctuate.
International non‑US origin passenger volumes have shown modest declines, according to Executive Vice President and Chief Commercial Officer Andrew Nocella. She reported that European traffic is down 6 percent year over year and Canadian volumes have slipped 9 percent. Yet she emphasized that US‑origin demand has more than compensated for these reductions.
Nocella further noted that, compared with the pre‑pandemic era, United’s revenue mix is less dependent on corporate business travel, reducing exposure to potential recessions. “As we think about the impact potential recessions could have on business traffic, it is important to note that our revenue makeup is broader,” she said.
United forecast both second‑quarter and full‑year 2025 results below Wall Street expectations, even after reporting Q1 revenue of $13.2 billion. While acknowledging headwinds, Kirby reiterated the carrier’s confidence in its diversified fleet strategy, extensive US manufacturing partnerships and the resilience of domestic demand.
As global trade policies continue to evolve, United plans to monitor developments closely. For now, the airline stands by its planned deliveries and affirms that its long‑term growth trajectory remains intact, buoyed by a balanced mix of Boeing and Airbus aircraft and robust domestic performance.
Related News : https://suspicious-zhukovsky.67-21-117-18.plesk.page/?s=United+Airlines