Delta's Clever Fix for Jet Shortages and Tariffs
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Since the new A321neos are stuck overseas awaiting seat approvals, Delta's been shipping their Pratt & Whitney engines back to the U.S. to swap into aging jets that need turbine work.
Once Washington and Brussels hammer out a trade deal, Delta can sail those fresh Airbus jets into the U.S. tariff-free, avoiding extra costs on each delivery.
With planes grounded and tariffs looming, this engine shuffle tackles two headaches at once: keeping older aircraft flying and sidestepping potentially steep import duties.
CEO Ed Bastian says they'll keep moving engines around as needed, making sure Delta doesn't pay a cent more in tariffs while keeping its fleet humming.
This article first appeared on GuruFocus.
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