Delta Won't Swallow Tariff-Related Costs on Planes, CEO Says -- WSJ

Dow Jones
10 Apr

By Alison Sider

Delta Air Lines is working to avoid paying tariffs on the dozens of planes it is set to receive from Airbus this year.

"We will not pay tariffs on any aircraft deliveries we take," Delta CEO Ed Bastian said during an earnings call Wednesday. "We will defer any deliveries that have a tariff on it."

The Trump administration's new tariffs are ending exemptions that allowed Boeing, Airbus and other aerospace manufacturers to build aircraft and jet engines largely without tariffs since the 1980s.

Airbus planes delivered from Europe should face a 20% tariff to be paid by U.S. customers, according to Bernstein analysts, who wrote Wednesday that they expect airlines to push for delays in deliveries.

"It gets very difficult to make that math work," Bastian said.

Bastian said the airline has had discussion about the situation with Airbus, and said he is hopeful the issue will be resolved through trade discussions. Airbus didn't immediately respond to a request for comment.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

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April 09, 2025 12:01 ET (16:01 GMT)

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