Delta’s pulling off some EuroTrip engine ingenuity to dodge aircraft tariffs
After reporting earnings this week, Delta Air Lines reiterated what it’s been saying for months now: it has no plans to pay tariffs on aircraft deliveries.
According to reporting by Bloomberg, it really means that.
The carrier has recently begun removing engines from new Airbus jets in Europe and shipping those engines back to the US to repair grounded planes. Meanwhile, the empty jets stay put. Because the engines themselves are US-made, the carrier does not pay tariffs on this process.
CEO Ed Bastian told Bloomberg that the company would continue to dodge duties in this way, adding that the overall number of new engines it’s shipping is very low. Given the relatively low profit margin Delta makes on its plane-flying side of the business, the company has previously found creative ways to skirt tariffs.
The carrier has recently begun removing engines from new Airbus jets in Europe and shipping those engines back to the US to repair grounded planes. Meanwhile, the empty jets stay put. Because the engines themselves are US-made, the carrier does not pay tariffs on this process.
CEO Ed Bastian told Bloomberg that the company would continue to dodge duties in this way, adding that the overall number of new engines it’s shipping is very low. Given the relatively low profit margin Delta makes on its plane-flying side of the business, the company has previously found creative ways to skirt tariffs.
