{"id":1529557,"date":"2025-04-10T08:15:00","date_gmt":"2025-04-10T12:15:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1529557"},"modified":"2025-04-10T08:15:00","modified_gmt":"2025-04-10T12:15:00","slug":"delta-cuts-outlook-refuses-to-pay-tariff-on-airbus-jets","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/delta-cuts-outlook-refuses-to-pay-tariff-on-airbus-jets\/1529557\/","title":{"rendered":"Delta Cuts Outlook, Refuses To Pay Tariff On Airbus Jets"},"content":{"rendered":"

Delta Cuts Outlook, Refuses To Pay Tariff On Airbus Jets<\/span><\/p>\n

\n

Airbus aircraft shipments from Europe to the U.S. now face tariffs of approximately 20%. This poses a significant challenge for Delta Air Lines, which scrapped its full-year financial guidance amid rising uncertainty in global trade.<\/p>\n

Delta Chief Executive Officer Ed Bastian told investors during an earnings call earlier that he has\u00a0been “very clear” with European manufacturer Airbus: The airline\u00a0would defer any deliveries subject to the additional tax. The carrier is working with France-based Airbus to mitigate the impact of the tariffs.\u00a0<\/p>\n

“We will not be paying tariffs on any aircraft deliveries,” Bastian said Wednesday on the earnings call, adding,\u00a0“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.”<\/p>\n

<\/a><\/p>\n

Bernstein analysts told clients they expect U.S. airlines to push for delivery delays. They estimate the effective tariff rate on European aircraft shipped to the U.S. to be around 20%.<\/p>\n

Bastian’s comments come after Delta\u00a0withdrew its full-year financial guidance but\u00a0anticipates a profit this year. The airline\u00a0declined to reaffirm an earlier forecast at the start of the year when it forecasted\u00a0annual adjusted earnings would exceed $7.35 a share.\u00a0<\/p>\n

“With the level of uncertainty we’re seeing and the amount of changes happening on a daily basis in global trade, it’s very difficult to predict what policies may look like over the course of the year,”\u00a0CEO Bastian told analysts.\u00a0<\/p>\n

According to company filings, Delta has\u00a0490 Airbus planes in its fleet and orders for nearly 200 more. The airline only plans to take ten\u00a0aircraft in 2025 as part of a pullback.\u00a0<\/p>\n

TD Cowen analyst Tom Fitzgerald said, “The\u00a0airline sector is in the eye of the storm, but we believe Delta to be a better port in the storm than many peers due to its revenue diversity and balance sheet strength,” adding the\u00a0carrier’s decision not to reaffirm its full-year forecast is “prudent.”\u00a0<\/p>\n

Several airlines recently warned that global turmoil has already pressured domestic demand. Bastian told analysts that he would closely monitor whether travel was pulling back.\u00a0<\/p>\n

Data from Goldman analysts showed a sharp drop in international travel to the U.S. following the escalation of the trade war.\u00a0<\/p>\n

Foreign Travelers Boycott USA After Tariff War Erupts https:\/\/t.co\/qN7xjbqYxB<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) April 9, 2025<\/a><\/p>\n

CEO\u00a0Bastian pointed out that this current environment is very\u00a0different from the pandemic when governments shut down the global economy.\u00a0<\/p>\n

“Having lived through that experience, I would not call this bleak by any means. It’s more uncertainty,” he said, adding, “As a result of that, growth has stalled.”<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 04\/10\/2025 – 04:15<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/delta-cuts-outlook-refuses-pay-tariff-airbus-jets<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Delta Cuts Outlook, Refuses To Pay Tariff On Airbus Jets Airbus aircraft shipments from Europe to the U.S. now face tariffs of approximately 20%. This…<\/p>\n","protected":false},"author":0,"featured_media":1529558,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1529557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1529557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1529557"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1529557\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1529558"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1529557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1529557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1529557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}