American Airlines expresses concern over the potential impact of new U.S. import tariffs on aircraft. CEO Robert Isom stated on Thursday that he does not want to pay higher costs for new aircraft. “I don’t want to pay more for airplanes. That doesn’t make sense,” said Isom.
The airline expects to receive new aircraft from Europe by the end of this year, which could fall under the new tariffs. Isom indicated that American Airlines does not intend to absorb these additional costs. With this stance, he joins the criticism voiced earlier by Delta Air Lines CEO Ed Bastian, who also spoke out against the tariffs.
The new tariffs are the result of policy changes under the Trump administration, ending exemptions that had been in place for the aviation industry since the 1980s. Manufacturers like Boeing and Airbus were thus able to produce and trade aircraft and engines for a long time largely without additional duties.
The effects on the sector are already being felt. Chinese airlines have returned Boeing aircraft, which were ready for delivery to China, back to the United States to avoid additional tariffs.
The aviation industry is currently lobbying to preserve exemptions from the tariffs. According to Isom, the existing policy has helped the United States become a major exporter in the aviation industry. “There is good reason to take specific measures for aviation,” he said. Isom also indicated that he expects to work together with the government to find a solution.