Delta Refuses Tariff Payments on Future Airbus Deliveries

Delta Air Lines has confirmed it will not pay tariffs on future aircraft deliveries and is prepared to defer orders if necessary. Speaking during the airline’s first-quarter 2025 earnings call, CEO Ed Bastian emphasized that Delta will avoid any aircraft delivery that includes additional tariff costs.

“We are very clear that we will not be paying tariffs on any Airbus deliveries,” Bastian said. “We will defer any deliveries that have a tariff on them.” He added that with current uncertainty, a 20% tariff makes it challenging to justify the cost of acquiring new aircraft and hopes trade discussions resolve the issue without requiring action from Delta or Airbus.

The remarks follow new U.S. trade tariffs imposed by President Donald Trump: 20% on European Union imports, impacting Airbus, and 10% on U.K. imports, affecting Rolls-Royce engines. Bastian noted that the U.S. aerospace sector exports six times more to Europe than it imports, calling for attention from U.S. lawmakers.

Delta currently has orders for 69 A220-300s, 82 A321neo, 6 A330-900s, 20 A350-1000s, and 8 A350-900s from Airbus, along with 100 Boeing 737-10s.

President Glen Hauenstein said Delta has seen a slowdown in bookings due to the ongoing global trade tensions, particularly in domestic and Canadian markets. However, international sales remain stable, supported by the airline’s diversified revenue sources, including Premium and Loyalty segments.

Delta reported Q1 operating revenue of USD13 billion and net income of USD240 million. The airline plans to manage costs by trimming unprofitable routes and reducing capacity growth in the second half of 2025.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com