Tariffs Could Inflate Jet Prices, Lessor Says

AerCap’s CEO warns of the impacts of tariffs on commercial aviation.

A Boeing 787-10 in North Charleston (Photo: AirlineGeeks | Chuyi Chuang)

[ Aircraft Orders and Deliveries ]March 14, 2025 11:59 am ET

By Ryan Ewing

“Tit for tat” tariffs could sharply increase prices for commercial aircraft, says AerCap CEO Aengus Kelly. In a worst-case scenario, he noted that a Boeing 787 Dreamliner could cost $40 million more than current prices.

“No one is going to pay that,” Kelly said during a CNBC interview this week. “The customer won’t take it. What will happen is that airlines who can’t afford the airplane will call Airbus.”

Over time, Boeing could lose out on market share, largely confining itself to the U.S. market, Kelly explained. The U.S. makes up around 25% of the global aviation market, and Airbus would be left with the rest of the world – about 75% to 80%.

“That is an absolute worst-case scenario. I am sure that won’t come to pass,” he added.

The Irish aircraft lessor’s CEO says Boeing needs cash right now. “At the end of last year, Boeing had $84 billion of inventory on its balance sheet. For Boeing to get cash, it needs to deliver aircraft,” Kelly continued.

He also gave credit to the manufacturer, which has improved quality and performance over the past year. So far this year, Boeing has set new delivery records.

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Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.

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Author

Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.
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