Delta is dismantling brand-new Airbus A321neo jets in Europe to ship the engines, made by US-based Pratt & Whitney|formulanone|CC BY-SA 2.0
Delta Air Lines is getting creative and literally switching engines to avoid President Donald Trump’s 10% tariff on plane imports, as it operates a significant number of European Airbus flights.
How it works?
The airliner is dismantling brand-new Airbus A321neo jets in Europe to ship the engines, as they are made by US-based Pratt & Whitney. They are then used to fix grounded planes stateside, avoiding import duties entirely.
While Airbus aircraft are assembled in Europe (and thus subject to tariffs), the engines originate in the United States, making them tariff-free upon re-entry.
Many of these new Airbus planes aren’t ready to fly anyway as they await seat certification. Delta’s strategy helps it get the grounded A320s back in the air and fly more passengers, all without paying millions in import fees.
Last week, Delta reinstated its 2025 profit forecast, signaling a stronger summer travel season.
CEO Ed Bastian held fast to his stance and said in a recent earnings call that Delta is “not planning to pay tariffs on aircraft deliveries.”
Delta has also employed workarounds, such as routing new Airbus A350 deliveries through third countries, to avoid tariffs altogether.
The airliner’s tactics are not new. Several companies, including Ford, have attempted to use such methods to mitigate US tariff costs, which have been uncertain since January.