Two major airlines are warning tariffs are forcing the cancellation of flights because the aircraft needed to operate them are too expensive to buy. Alaska is canceling 14 flights a week because it wouldn’t accept delivery of two suddenly more expensive Embraer 175s for its regional subsidiary Horizon. The main line is all Boeing except for a few A330s that came with its acquisition of Hawaiian Airlines. Delta dodged tariffs on an A350 last week by flying it from France to Japan for its first flight. It was therefore not a “new” airplane on its second flight, which was to the U.S. But it warned the Commerce Department last week that in the long term tariffs on planes and parts could reduce capacity by 10 million passengers.
Horizon was due to accept two new E175s from Brazil’s Embraer in May. The 10% tariff was enough for the airline to stop the delivery and start adjusting its schedule. “Amid the ongoing uncertain economic environment, we are focused on controlling what we can control — including costs, productivity, operational performance and taking care of our guests to the best of our ability,” Alaska said in a statement to CBS. “As part of this effort to control our costs, Alaska will not accept additional costs imposed by tariffs throughout our supply chain.” The 14 flights it canceled are all on routes that have other flights, but it’s meant change to the travel plans of thousands of passengers. As for Delta, it’s Airbus’ largest U.S. customer for A350s but it also is due to get other Airbus models from Germany and Canada along with Embraers from Brazil.
You flagged some key moves, Russ – but the larger picture needs grounding.
What’s the endgame? If the goal is to push foreign manufacturers or boost U.S. aircraft production, the tools don’t match the target. Boeing isn’t ready to step in, it has delays on the 737 MAX, 787, and 777X, and no regional jet to replace the Embraer 175. There is no domestic alternative.
Who benefits? In practice, no one yet. Airbus and Embraer aren’t budging. U.S. airlines are delaying deliveries. Passengers are losing flights.
Who pays? U.S. carriers eat higher costs or cancel deliveries. Alaska dropped two E175s and cut 14 flights per week. Delta had to route an A350 through Japan just to dodge a tariff. Those costs get passed down, fewer seats, higher fares, thinner service in smaller markets.
How long can this go on? Not long without real impact. Airlines run tight margins and long lead times. Disrupting supply chains without domestic replacements just shrinks the fleet and limits growth.
This isn’t a policy that reshapes the market. It’s a drag on the system where domestic passengers, not foreign OEMs, are feeling first.
An airline is canceling 14 flights a week because they refuse to fly their existing aircraft on their existing routes? These 14 flights it canceled happen to be all on routes that have other flights?
Why can’t airlines just say that it will lose money either way (with old or new planes) on this route and be done with it?
They had planned on flying some number of routes with a certain number of aircraft. Now that they are planning on having fewer aircraft available, you are surprised that they are reducing their planned routes?