Alaska Air Group, the parent company of Alaska Airlines and Horizon, is delaying delivery of aircraft and dropping flights in response to economic uncertainty created by new tariffs.
The carrier told The Seattle Times on Monday that it put off delivery of two Embraer E175s in May due to “additional costs imposed by tariffs.”
Embraer is a Brazilian company, and as of April, the country faces a 10% tax on imports bound for the U.S.
The two aircraft were going to be used by Alaska Air Group regional subsidiary Horizon Air, which operates mainly in the western U.S. and western Canada. Because of the delay, Horizon has canceled 14 flights a day through the end of July, a spokesperson told the Times. The carrier said it mainly dropped flights on high-frequency routes so that customers can be changed to different flights without too much hassle.
“We deeply regret the impact this situation will have on our guests this summer,” the spokesperson said. “We will continue working toward a solution that allows us to take delivery of these aircraft, and we are hopeful the disruption will be short-lived.”
Calculating the Costs
Embraer has not commented on the delayed delivery to Alaska Air Group, but it has called for the U.S. to return to a zero-tariff policy for the aviation sector.
President Donald Trump imposed wide-ranging tariffs on dozens of countries between April 2, which he termed “Liberation Day,” and April 5. Since then, some countries have had their tariffs reduced or temporarily suspended, while others have seen their rates climb.
Certain industries and products, such as automobiles, aluminum, and steel, also face additional taxes beyond the rate imposed on their home country.
Notably, in May, Trump signed a trade deal with British Prime Minister Keir Starmer exempting Rolls-Royce aircraft engines and other aviation equipment from the baseline 10% tariff levied on most U.K. imports.
