Alaska Airlines, based in Seattle, Washington, has announced that it will be canceling more than a dozen flights per day due to the impact of tariffs on their ability to accept delivery of new aircraft. The carrier has stated that it will not immediately accept delivery of two Embraer 175 regional jets in order to avoid additional costs related to tariffs. These aircraft were intended for use by Horizon Air, a regional subsidiary of Alaska Airlines.
President Trump’s tariff agenda has caused major disruptions in supply chains for numerous businesses, resulting in increased prices for consumers as companies try to protect their margins. The aviation industry has also expressed concerns about the effects of these levies on their business.
In a statement to CBS News, Alaska Airlines expressed regret over the impact this situation will have on their passengers during the summer season. They explained that they are focused on controlling costs, increasing productivity, maintaining operational performance, and providing the best possible experience for their guests. As part of their efforts to control costs, Alaska Airlines has decided not to accept any additional expenses associated with tariffs throughout their supply chain.
As a result of not receiving the new aircraft, Alaska Airlines has had to cancel 14 flights per day until the end of July. This is because Horizon Air exclusively operates Embraer jets, while Alaska Airlines has an all-Boeing fleet. These planes, which were expected to arrive from Brazil in May, have been subject to a 10% tariff since April.
Delta Air Lines also took measures to avoid paying tariffs on new aircraft earlier this year. In April, they had new Airbus A350 airlines delivered from France to Japan and then flew them internationally before bringing them to the U. S. This allowed them to avoid the tariffs since the planes were not considered new when they arrived in the country.
The canceled routes were originally scheduled to be serviced by the new planes by the end of May and were intended to be used during the summer season for Horizon, which serves the Pacific Northwest, Alaska, California, Colorado, Utah, and western Canada.
Alaska Airlines has stated that they will be cutting routes that are served by multiple flights in order to avoid completely eliminating any single route, even if it is only temporarily. They have also ensured that the communities they serve that already have limited service will not be affected.
In a statement, Alaska Airlines explained that they carefully considered their passengers when deciding which flights to cancel and that they do not take these decisions lightly. They are currently working to rebook all affected passengers on the next best available option for their travel plans.
Kris Van Cleave contributed to this report.
Megan Cerullo is a New York-based reporter for CBS MoneyWatch, covering topics such as small businesses, workplace issues, healthcare, consumer spending, and personal finance. She is a regular contributor to CBS News 24/7, providing insight and analysis on her reporting.