Delta and ACG CEOs Warn of Industry Turmoil as Tariffs Disrupt Global Aviation

WASHINGTON - April 10, 2025 - PRLog -- The global aviation industry is facing fresh turbulence as sweeping U.S. tariffs on imported goods disrupt airline operations, aircraft deliveries, and leasing strategies across the sector.

In early April 2025, the U.S. administration imposed tariffs on imports from more than 180 countries, including a 20% levy on European Union exports and rates of 10% to 32% on goods from the UK, India, South Korea, Japan, and Taiwan. Although a 90-day rollback reduced most tariffs to 10%, the announcement rattled market confidence and injected new uncertainty into an already fragile industry.

Delta Air Lines quickly responded. During its April 9 earnings call, CEO Ed Bastian announced the airline would delay accepting any aircraft deliveries subject to tariffs. "We will not pay tariffs on any aircraft deliveries we take. We will defer any deliveries that have a tariff on it," Bastian said.

Delta reported $14 billion in quarterly revenue but offered no full-year guidance, citing "broad economic uncertainty around global trade." Bastian added, "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 leasing sector is also feeling the strain. Speaking at the Airline Economics Growth Frontiers conference in Tokyo, Aviation Capital Group CEO Tom Baker said the shifting trade environment is complicating airline and lessor operations. "When you introduce volatility, uncertainty, and chaos, it's a lot more challenging for airlines to operate, make money and serve the customers properly," Baker said.

Baker also urged aircraft manufacturers to adapt quickly. "OEMs will have to figure out how to serve their customers with as little disruption and as little additional cost as possible," he added.

Industry analysts warn that the longer tariffs stay in place, the greater the risk of long-term demand destruction. International arrivals to the U.S. have dropped roughly 10%, with steeper declines from Canada and Mexico. Deglobalization trends, they argue, are fundamentally at odds with the aviation industry's purpose of global connectivity.

Investor reactions have been swift. Following the tariff announcement and Delta's deferral decision, Delta shares fell 11%. American Airlines, United, and Southwest dropped 13%, 12%, and 10%, respectively.

Still, there's cautious optimism. "We are a resilient industry, so we'll figure it out," Baker said. "With great change and great uncertainty comes great opportunity."

For now, the message from across the industry is clear: tariff uncertainty is freezing decision-making. Until long-term clarity emerges, the aviation sector remains in a holding pattern.

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