Aircraft Orders & Deliveries
Impact of US Tariffs on Aircraft Deliveries and Aviation Industry
US tariffs on Brazilian aerospace exports threaten aircraft deliveries and cost increases, impacting Embraer, Airbus, Boeing, and the global aviation sector.
The Impact of Tariff Uncertainty on Aircraft Deliveries: An Analysis of IATA’s Warning
Airlines worldwide are facing a new wave of uncertainty that could significantly reshape the aviation industry’s recovery trajectory. According to the International Air Transport Association (IATA), the potential imposition of tariffs, particularly by the United States on Brazilian exports, has generated enough concern to prompt carriers to reconsider or delay aircraft deliveries. The implications of such policy shifts are far-reaching, affecting not only aircraft manufacturers like Embraer, Airbus, and Boeing, but also the broader aerospace supply chain and global air travel demand.
This development comes at a critical moment. The aviation industry is still navigating post-pandemic recovery, supply chain disruptions, and fluctuating fuel prices. IATA Director-General Willie Walsh’s recent remarks highlight the gravity of the situation, suggesting that tariff-related uncertainty could undermine long-term planning and investment across the sector. The possibility of increased aircraft costs due to tariffs adds a layer of complexity to already fragile procurement and production ecosystems.
In this article, we explore the context and consequences of these emerging trade tensions, focusing on the potential impact on aircraft deliveries, airline operations, and the broader aerospace industry. We also examine historical precedents and expert opinions to assess the risks and possible solutions.
U.S. Tariffs and the Embraer Case
Tariff Policy and Its Immediate Implications
In July 2025, the U.S. government announced its intention to impose 50% tariffs on Brazilian exports starting in August. This policy directly affects Embraer, Brazil’s flagship aircraft manufacturer and one of the world’s leading producers of regional jets. The tariffs are part of a broader U.S. strategy to promote domestic manufacturing, but their blanket application to aerospace goods has sparked widespread concern.
Embraer’s CEO, Francisco Gomes Neto, has been vocal about the potential consequences. He warned that the tariffs could lead to significant revenue losses, potentially mirroring the financial impact experienced during the COVID-19 pandemic. In 2020, Embraer saw a revenue drop of approximately $4.3 billion. Neto described the tariffs as a “trade embargo,” highlighting the risk of order cancellations and deferred deliveries, especially from U.S.-based airlines that constitute a significant portion of Embraer’s customer base.
Beyond Embraer, the tariffs could disrupt supply chains and production schedules, affecting a wide range of suppliers and partners in the U.S. and elsewhere. The uncertainty surrounding final aircraft costs complicates procurement decisions for airlines, many of which are already operating under tight financial constraints.
“The tariffs would amount to a trade embargo,” said Embraer CEO Francisco Gomes Neto. “We are at risk of order cancellations and deferred deliveries.”
IATA’s Industry-Wide Warning
Speaking at a media roundtable in Singapore on July 16, 2025, IATA Director-General Willie Walsh emphasized that the issue extends far beyond one company or country. “It’s not just going to be a major Boeing and Airbus issue,” Walsh said. “It’ll impact all aspects of the aerospace industry and have an impact on most, if not all, airlines as well.”
Walsh highlighted how tariff uncertainty creates a challenging environment for fleet planning. Airlines, unsure of the final cost of aircraft under new trade rules, may choose to delay or cancel deliveries. This hesitation could stall capacity expansion plans and affect route development, particularly in markets heavily reliant on regional jets like those produced by Embraer.
According to IATA’s economic analysis, if the tariffs are implemented as proposed, global aircraft deliveries could decline by 4–6% in 2025. This would translate to an estimated $18 billion in lost revenue across the aerospace industry, compounding existing challenges related to labor shortages, fuel price volatility, and supply chain disruptions.
Historical Context: Trade Disputes and Aviation
The Airbus-Boeing WTO Dispute
The aviation industry has long been vulnerable to geopolitical and trade-related tensions. One of the most notable examples is the Airbus-Boeing dispute, which began in 2004 and spanned over 17 years. The conflict centered on allegations of illegal subsidies provided by both the U.S. and the EU to their respective aircraft manufacturers.
In 2019, the U.S. imposed $7.5 billion in tariffs on EU goods, including aircraft, after the World Trade Organization (WTO) ruled against Airbus. The EU responded in 2020 with $4 billion in tariffs targeting U.S. products, including Boeing aircraft. Although a truce was reached in 2021, temporarily suspending the tariffs, the episode demonstrated how trade disputes can escalate quickly and disrupt global supply chains.
The Airbus-Boeing case set a precedent for using tariffs as tools of political leverage, rather than strictly economic measures. This has contributed to a climate of uncertainty in aerospace, where long-term investments and production planning are increasingly complicated by the potential for sudden regulatory changes.
Lessons from the COVID-19 Pandemic
The pandemic revealed the fragility of global aerospace supply chains. In 2020, global passenger traffic plummeted by 94% in April alone, and the industry recorded losses exceeding $370 billion. Airlines responded by deferring approximately 35% of planned aircraft deliveries in 2020 and 2021.
This experience highlighted the risks of over-reliance on just-in-time manufacturing and globally dispersed production networks. Tariffs, by increasing costs and introducing delays, could replicate similar disruptions by making it harder to source essential components like engines, avionics, and composite materials.
As a result, both manufacturers and airlines are now more cautious. Many are exploring ways to localize production or diversify suppliers to mitigate future risks, though such strategies require significant time and investment to implement effectively.
Production and Delivery Challenges
Airbus and Boeing Under Pressure
Airbus and Boeing, the world’s two largest aircraft manufacturers, are already grappling with production challenges in 2025. Airbus aims to deliver 820 aircraft this year but had only managed 306 by the end of June. To meet its target, the company would need to deliver over 85 aircraft per month for the rest of the year, a pace it has never achieved.
The A320neo program, a cornerstone of Airbus’s narrowbody strategy, averaged just 39 deliveries per month in the first half of 2025, well below the 50-per-month target. Widebody programs like the A350 are also lagging due to shortages in engines and composite materials. Airbus’s backlog now stands at 8,742 aircraft, equivalent to over 10 years of production at current rates.
Boeing, meanwhile, delivered 280 aircraft in the first half of 2025. Its backlog of 6,581 aircraft is dominated by the 737 MAX, which accounts for 74% of orders. The company faces additional scrutiny following investigations into a recent Air India 787 incident, and any tariff-related cost increases could further delay production and delivery schedules.
Conclusion
The aviation industry stands at a critical juncture. The potential introduction of new tariffs, particularly those targeting Brazilian aerospace exports, threatens to derail recovery efforts and introduce new layers of complexity into aircraft procurement and production. IATA’s warning underscores the systemic nature of the threat, which could affect manufacturers, airlines, suppliers, and even passengers through higher costs and reduced service availability.
Looking ahead, the industry may need to adapt by exploring alternative sourcing strategies, advocating for sector-specific trade exemptions, and enhancing financial resilience. Policymakers, meanwhile, face the challenge of balancing domestic economic goals with the need to maintain a stable and predictable global trade environment. Only through coordinated action can the aviation sector avoid a prolonged period of disruption and uncertainty.
FAQ
Why are airlines reconsidering aircraft deliveries?
Due to uncertainty over potential U.S. tariffs on Brazilian aircraft, which could significantly increase costs and complicate procurement planning.
What impact could the tariffs have on Embraer?
Embraer may face order cancellations and deferred deliveries, with revenue losses potentially comparable to those experienced during the COVID-19 pandemic.
How are Airbus and Boeing affected?
Both manufacturers are already behind their 2025 delivery targets and face additional challenges from supply chain constraints and potential tariff-related cost increases.
Has the aviation industry faced similar issues before?
Yes, notably during the Airbus-Boeing WTO dispute and the COVID-19 pandemic, both of which disrupted production and deliveries.
Sources
Photo Credit: AirPro News
Aircraft Orders & Deliveries
ETF Airways Adds Fourth Boeing 737-800 to Its Fleet
Croatian ACMI operator ETF Airways inducts Boeing 737-800 9A-ICF, growing its fleet to five aircraft.
This is original reporting and analysis by AirPro News.
Croatian charter and ACMI operator ETF Airways has expanded its operational capacity with the induction of a Boeing 737-800, registered as 9A-ICF. The addition brings the carrier’s total fleet to five aircraft, supporting its growing footprint in the European wet-lease market.
The airline announced the fleet addition in early June 2026 through an official company statement. The aircraft represents the fourth Boeing 737-800 to join the Zagreb-based operator, which specializes in providing Aircraft, Crew, Maintenance, and Insurance (ACMI) services to partner airlines.
Aircraft history and specifications
The newly inducted Boeing 737-800, specifically a 737-8FZ variant, is powered by CFM International CFM56-7B26 engines and configured with 189 economy-class seats. According to fleet data from AvioRadar, the airframe holds Manufacturer Serial Number (MSN) 29659 and Line Number 3280.
Prior to joining ETF Airways, the aircraft operated for multiple carriers across Asia and Europe. Its operational history includes the following milestones:
- May 2010: Completed its first flight and was delivered to Shandong Airlines, registered as B-5531.
- September 2018: Transferred to South Korean low-cost carrier Eastar Jet, registered as HL8325.
- February 2026: Placed in storage under the Norwegian Air Shuttle Air Operator Certificate, registered as LN-NIK.
- June 2026: Officially entered service with ETF Airways as 9A-ICF.
In its announcement, ETF Airways highlighted the role of the new aircraft in maintaining operational reliability.
As our fleet continues to grow, so does our commitment to delivering safe, reliable, and exceptional service to our partners and passengers around the world.
Strategic growth and diversification
The arrival of 9A-ICF follows a period of strategic diversification for ETF Airways. In March 2026, the airline took delivery of its first turboprop aircraft, an ATR 72-600 registered as 9A-ATR. This marked a departure from its previously all-jet fleet, allowing the company to target regional market segments and short-haul ACMI contracts.
The fleet expansion aligns with broader infrastructure investments by the company. In late 2025, ETF Airways outlined plans to establish a dedicated maintenance base at Zadar Airport (ZAD) in Croatia, alongside the formation of independent maintenance and travel subsidiaries.
AirPro News analysis
We view ETF Airways’ dual-pronged fleet strategy as a calculated response to shifting demands in the European ACMI sector. By maintaining a core fleet of 189-seat Boeing 737-800s, the airline can seamlessly integrate into the summer schedules of major European leisure and low-cost carriers. Simultaneously, the recent introduction of the ATR 72-600 provides the flexibility to serve thinner regional routes where narrowbody jets are economically unviable. Securing mid-life 737-800s from the secondary market remains a cost-effective method for ACMI operators to scale capacity without the capital expenditure required for new-generation aircraft.
Sources: ETF Airways
Photo Credit: ETF Airways
Aircraft Orders & Deliveries
Azorra Completes Placement of 12 Ex-EGYPTAIR A220-300s
Azorra delivers final ex-EGYPTAIR A220-300 to Breeze Airways, with four airframes parted out to address PW1500G engine shortages.
Aircraft lessor Azorra has finalized the placement of 12 Airbus A220-300 aircraft formerly operated by EGYPTAIR, concluding a transaction that redistributes the narrowbody jets to new operators and dismantles select airframes to ease industry-wide supply chain constraints.
In a press release issued on June 10, 2026, Azorra confirmed the delivery of the final aircraft from the portfolio to Breeze Airways. The lessor initially purchased the 12 aircraft in February 2024 to facilitate the Egyptian flag carrier’s fleet transformation program.
Fleet redistribution and strategic part-outs
According to reporting by Air Data News, the 12 aircraft have been divided among three primary destinations. Breeze Airways received seven of the airframes, while Cyprus Airways took delivery of one.
The remaining four aircraft were allocated for a more unconventional purpose. In April 2025, Azorra entered an agreement with Delta Material Services to part out the four young airframes. Cirium Profiles data indicates this move was designed to supply critical components and spare Pratt & Whitney PW1500G engines to support Delta Air Lines and its active A220 fleet.
Azorra Chief Executive Officer John Evans stated the transaction demonstrates the company’s ability to create innovative solutions across the aviation ecosystem.
“Beyond expanding our A220 portfolio, these aircraft are helping address critical spare engine and parts availability challenges while supporting operators around the world,” Evans said.
Evans also noted the collaboration of Airbus and Pratt & Whitney throughout the complex transaction process, reaffirming the lessor’s confidence in the A220’s economics and performance.
EGYPTAIR’s operational shift
The sale of the A220-300 fleet resolves ongoing operational challenges for EGYPTAIR. Aviation Week previously reported that the carrier had grounded portions of its A220 fleet due to durability issues and maintenance delays associated with the PW1500G engines.
By divesting the relatively young aircraft, EGYPTAIR aims to improve maintenance commonality and focus on other aircraft types within its network.
Capt. Ahmed Adel, Chairman & CEO of EGYPTAIR Holding Company, noted the transaction formed an important part of the airline’s fleet transformation strategy. He expressed confidence that the aircraft would continue to deliver strong value for their new operators.
AirPro News analysis
The decision to part out four young Airbus A220-300 airframes underscores the severity of the supply chain constraints currently impacting the global aviation industry. We view this as a highly pragmatic asset management strategy. While parting out early-life airframes is typically a last resort, the chronic shortage of spare PW1500G engines has altered the economic calculus for lessors and operators alike.
By sacrificing a portion of the ex-EGYPTAIR fleet, Azorra is enabling Delta Air Lines to keep a larger portion of its own A220 fleet operational. This transaction also solidifies Azorra’s position as a dominant player in the A220 market. The lessor currently has 28 A220s in service globally and another 15 on order, representing a significant portion of its 338-asset portfolio.
Sources: Azorra
Photo Credit: Azorra
Aircraft Orders & Deliveries
ACG Extends $3.1 Billion Credit Facility to June 2030
Aviation Capital Group extends its $3.1B revolving credit facility to 2030, backed by 24 banks and a 121-aircraft 737 MAX backlog.
Aviation Capital Group (ACG) has secured long-term liquidity by extending the maturity of its $3.1 billion senior unsecured revolving credit facility to June 2030.
Announced in a press release on June 10, 2026, the amendment and restatement of the facility was completed with JPMorgan Chase Bank acting as the administrative agent. The extension from its previous June 2028 maturity date provides the Newport Beach, California-based aircraft lessor with continued financial flexibility to fund new aircraft deliveries and support its global airline customer base.
Facility details and banking syndicate
The $3.1 billion facility is supported by commitments from 24 financial institutions. This core credit line is part of ACG’s broader liquidity strategy, which includes approximately $5.1 billion in total revolving commitments. Alongside the primary syndicate, ACG maintains a $1.5 billion line of credit provided by its parent company, Tokyo Century Corporation, and a separate $500 million revolving credit facility with a syndicate of lenders based in Asia.
Matthew Novell, Vice President of Capital Markets and Assistant Treasurer of ACG, stated that the extension reflects the strength of the company’s platform and the depth of its global banking relationships.
“This extension further enhances our liquidity and financial flexibility, enabling us to continue investing in our fleet, support our airline customers and execute on our growth objectives,” Novell said.
Fleet expansion and corporate restructuring
The extended credit facility arrives as ACG actively expands its portfolio, which stood at approximately 500 owned, managed, and committed aircraft as of March 31, 2026. The lessor currently places aircraft with roughly 90 Airlines across 50 countries. To support this fleet growth, ACG finalized an Orders for 50 Boeing 737 MAX jets on January 13, 2026, splitting the commitment evenly between the Boeing 737 MAX 8 and Boeing 737 MAX 10 variants. This order increased the company’s total 737 MAX backlog to 121 aircraft.
Deliveries are ongoing, with ACG handing over its first of six new Boeing 737 MAX 8 aircraft to Royal Air Maroc on March 31, 2026. The lessor has also restructured its executive team to manage these manufacturer relationships, appointing Rob Downes to the newly created role of Chief Original Equipment OEMs Officer on April 16, 2026.
AirPro News analysis
We view the successful extension of ACG’s $3.1 billion credit facility as a strong indicator of institutional confidence in the aircraft leasing sector. By pushing the maturity date to 2030, ACG insulates itself from near-term refinancing risks while securing the capital required to absorb its expanding Boeing 737 MAX order book. The backing of 24 financial institutions, combined with the $1.5 billion backstop from Tokyo Century, positions the lessor to capitalize on high global demand for narrowbody lift even as it navigates a transition period following the May 31, 2026, departure of Chief Financial Officer Craig Segor.
Sources: Aviation Capital Group
Photo Credit: Boeing
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