Airbus SE said it would not cover tariffs on aircraft imported by American Airlines, clashing with carriers who are reluctant to bear the surcharge imposed by President Donald Trump.
AirBus CEO Guillaume Faury said on a conference call after reporting first-quarter results that the European planner was responsible for any additional taxes it imports to its aircraft assembly plant in Alabama and then sells it to customers.
“But when we export from Europe to the United States, it’s the import of the customer,” Faury said. “They aren’t very willing to pay tariffs, but that’s theirs.”
Comments show how the aviation industry is working to filter new fees through the aerospace supply chain, which has avoided tariffs for decades. Faury said Airbus is working to reduce surcharges, although the process has distorted a fragile system that has relied on the free flow of thousands of components across the border.
“I can tell you that Airbus’s point is that they are not good for us and European industries, but not for the U.S. industry,” Ferry said of tariffs, advocating the restoration of tax-free status.
Airlines, including Delta Airlines and American Airlines Group, said they were reluctant to pay extra fees for the plane. But, in some cases, there are some solutions – for example, Bloomberg reported this week that the compilation of the new Airbus A350-900 built in the city of Toulouse, France, reported this week, which is a similar strategy to the 2019 airlines adopted in 2019, when trade disputes led to short-term U.S. tariffs.
“We are looking for opportunities to export outside the U.S., especially for airlines with international operations.” “We are in arrangements with several customers, their networks, their partners on how to handle this situation.”
France-based Toulouse, with its first-quarter results, warned that tariffs have injected further uncertainty into the aviation supply chain, which has not yet fully recovered from Covid-19.
Stocks fell 4.9% this year. Thursday is a market holiday in France.
The company reiterated that it still intends to provide about 820 commercial aircraft this year, although the target does not include the consequences of tariffs and “no additional disruptions to global trade or the world economy.” Airbus said delivery will be loaded this year, “reflecting the specific supply chain challenges we face.”
Engine supplier Rolls-Royce Holdings Plc said Thursday it expected to meet its financial targets this year as it found ways to mitigate the impact of the announced tariffs. British manufacturers provide engines for all Airbus widebody aircraft.
Airbus has been working to make up the engines of narrow aircraft that make up most of the delivery. It said it expects output to be soft in the first half of 2025 as it will build aircraft that have not yet been engineed and therefore cannot be handed over to airlines.
In the first quarter, Airbus reported adjusted earnings before interest, with revenue of €13.54 billion or €624 million. Net income was €793 million, and in the Bloomberg survey, the company reevaluated some equity investments and exceeded the estimate of €532.6 million in the Bloomberg survey.
Boeing is also affected by Trump’s tariff attacks. China retaliates at its own expenses and tells its carriers that they should avoid taking Boeing.
Although Faury acknowledged that the country’s move might be “good news” for European masterminds, he said it was in the interest of the industry as a whole.
This article was generated from the Automation News Agency feed without the text being modified.
