1028 GMT - Airbus appears more vulnerable to the effects of U.S. tariffs than after-market service companies like MTU Aero Engines, Rolls-Royce and Safran, Barclays analysts Milene Kerner and Sambhav Kochar say in a research note. Though tariffs aren't expected to threaten demand for planes, they could lead to increased lead time and difficulties in sourcing for the European plane maker, the analysts say. Companies like MTU, Rolls-Royce and Safran can pass on higher costs to the airlines they cater to due to their strong pricing power, the analysts say. Airbus, too is capable of passing on costs to customers, the analysts say. The company could also rely on the geographic diversity of its order backlog to reassign delivery slots should U.S. airlines defer or cancel orders, Barclays says. Airbus shares trade 3.2% lower at 157.52 euros. (pierre.bertrand@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 06:28 ET (10:28 GMT)
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