Alaska Airlines cancels flights due to tariff-related costs, as the Seattle, Washington-based airline announced that it is unable to deliver two Embraer 175 regional jets. Today’s blog focuses on President Trump’s tariff agenda and its impact on Alaska Airlines. President Trump has forced many companies to increase consumer prices.
“We deeply regret the impact the situation will have on our guests this summer. Amid the ongoing uncertain economic environment, we are focused on controlling what we can control- including costs, productivity, operational performance, and taking care of our guests to the best of our ability.”
“As part of this effort to control our costs, Alaska will not accept additional costs imposed by tariffs throughout our supply chain.”
–Alaska Airlines stated to CBS News
According to Alaska Airlines, they had to cancel their 14 flights in a day. Not only Alaska, but Delta also avoids paying tariffs on new aircraft. They launched their new Airbus A350 internationally instead of the U.S.
What are Tariffs and How do They Work?
If you are wondering about tariffs and the reason behind Alaska Airlines cancels flights due to tariff-related costs. Tariffs are taxes applied to imported goods, and the charges are a percentage of the goods’ value. These taxes are paid by the companies to the government if they import any foreign products.
This is the reason why Alaska Airlines is not accepting these tariffs and is cancelling its flights.
Which Routes is Alaska Cancelling?
New planes of Alaska Airlines were supposed to arrive around the end of May. These planes were scheduled to provide service in the summer season in the Pacific Northwest, Alaska, California, Colorado, Utah, and western Canada. Alaska announced that they are cutting all routes served by several flights entirely.
“ When deciding which flights to cancel, we put our guests at the center of consideration. We don’t take these decisions lightly, as we know it means disruption for our guests and their travel plans. We assessed our network and protected the communities we serve, which already have limited service. Our teams are working to reaccommodate all impacted guests on the next best option for their travel plans.”
–Statement made by Alaska Airlines
What are Trump’s Tariffs on Individual Countries?
In August, President Trump announced new tariffs on a dozen countries, including-
- 50% tariffs on Indian goods.
- 50% tariffs on Brazilian goods.
- 30% tariffs on South African goods.
- 20% tariffs on Vietnamese goods.
- 15% tariffs on Japanese goods.
- 15% tariffs on South Korean goods.
These Top three trading partners were warned about high tariffs
- 100% tariffs on China (China and the US both threatened each other with 100% tariffs.)
- 35% tariffs on Canada.
- 30% tariffs on Mexico.
Reasons that Alaska Airlines Cancel Flights due to Tariff-Related Costs
Here are the reasons mentioned below-
- Increased costs for aircraft manufacturing and sales.
- Supply chain disruptions.
- Corporate and high-net-worth individual purchases.
- Impact on Maintenance, repair, and overhaul (MRO) services.
- Change in demand for private jets.
Conclusion
Alaska Airlines cancels flights due to tariff-related costs because they are not accepting President Trump’s taxes on imported goods. Alaska Airlines made many statements about this cancellation. The airlines cut off all routes completely, even though these are temporary. This airline canceled its 14 flights a week and canceled the arrival of two new E175s from Brazil’s Embraer in May. The 10% tariff was the reason behind Alaska’s decision to fly new aircraft instead of the U.S.