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In the face of mounting tariff pressures from former President Donald Trump's administration, Airbus is proactively seeking ways to mitigate the impact on its operations, particularly concerning deliveries to U.S. airlines. The company's Chief Executive Officer, Guillaume Faury, revealed during an earnings call on Wednesday that they are exploring opportunities to export their aircraft to the United States through alternative routes, particularly focusing on airlines with international operations.

Faury elaborated on the challenges posed by tariffs, noting that shipping parts to their final assembly line located in Mobile, Alabama, incurs a significant 10% tariff. In contrast, if Airbus constructs the aircraft in Europe and ships the finished product to the United States, the airline bears the import fee instead. He remarked, Theres obviously a contradiction that [] actually nobody wants to pay the additional cost. This sentiment highlights the broader financial implications for both manufacturers and airlines.

Earlier this year, Faury had indicated that the costs associated with tariffs would ultimately be transferred to the airlines, which could consequently lead to increased ticket prices for consumers. However, Delta Air Lines' CEO Ed Bastian had a different perspective during a recent earnings call, asserting that his airline would not absorb the tariff costs. Instead, Delta is poised to defer aircraft deliveries until a more favorable economic environment emerges.

Recent flight tracking data indicated that a new Airbus A350-900 for Delta was scheduled to depart from Toulouse, Francethe company's headquartersfor Tokyo's Narita Airport on Wednesday. However, this flight was abruptly canceled, although a subsequent flight has been arranged for Saturday, according to FlightAware's data. This strategy echoes the tactics employed by Airbus during a previous trade conflict between the U.S. and the European Union, showcasing the company's adaptability in navigating such economic hurdles.

Faury commented on this familiar tactic, stating, We are doing what we were doing five years ago in a similar situation. He referred to the World Trade Organization's previous allowance of tariffs on aircraft, which could reach as high as 15%, as the two sidesAirbus and Boeingaccused each other of unfair practices related to subsidies. This tariff dispute reached a truce in 2021, but the repercussions are still being felt in the industry.

During the last round of tariffs, Delta made a strategic decision to utilize new Airbus planes solely for international routes, effectively circumventing the classification of these planes as officially imported, an approach confirmed by an airline spokesperson in 2019. On Wednesdays earnings call, Faury made a strong appeal for the reinstatement of zero tariffs on all civil aerospace components and aircraft, emphasizing the need for a more stable trading environment.

The airline sector has exhibited notable volatility in stock performance in reaction to tariff announcements, particularly as travel is often one of the first expenses consumers cut back on during times of economic uncertainty. Several airlines have recently opted to withdraw their financial forecasts as they disclosed their first-quarter earnings for the year. In contrast, Airbus maintained its financial outlook, excluding tariff impacts due to the ongoing uncertainty surrounding the situation.

In its first-quarter report, Airbus revealed that its net income surged by a remarkable one-third, totaling 793 million euros (approximately $898 million), surpassing analysts' expectations and resulting in a 2% increase in its share price. This positive financial performance suggests that, despite the challenges posed by tariffs, Airbus continues to demonstrate resilience in the market.