Delta CEO says won't pay tariffs on Airbus planes, cites trade tensions

Delta Air Lines Inc. is refusing to pay tariff costs imposed on planes made by Airbus SE, a potential point of tension for carriers globally as US President Donald Trump’s trade war injects new volatility into the aircraft market. 

Delta Chief Executive Officer Ed Bastian said he has been “very clear” with Airbus and would defer any deliveries with the additional expenses. The carrier is working with Toulouse, France-based Airbus to minimize the impact. 

“We will not be paying tariffs on any aircraft deliveries,” Bastian said Wednesday on the carrier’s quarterly earnings call. “These times are pretty uncertain, and if you start to put a 20% incremental cost on top of an aircraft, it gets very difficult to make that math work.”

 

 

The comments came after Delta pulled its 2025 profit forecast and announced steps to rein in costs this year, including pulling back capacity expansion plans. Bastian said growth has “flat-lined” as trade uncertainty and economic volatility weigh on travel demand. 

As part of its pullback, Delta now plans to take only 10 aircraft in 2025, all from Airbus. The carrier has 490 Airbus planes in its fleet and orders for 194 more, according to company filings. An Airbus spokesman declined to comment on Bastian’s remarks.