U.S. Tariffs Stall Embraer Jet Deliveries, Forcing Alaska Airlines to Cut Summer Flights

Alaska Airlines has canceled up to 14 daily flights this summer after delaying the delivery of two Embraer E175 jets from Brazil. The airline made this decision to avoid paying a new 10% U.S. import tariff, which the Trump administration imposed on Brazilian aircraft in April 2025.

The two jets, intended for Alaska’s regional subsidiary Horizon Air, are now parked in Brazil after completing test flights. Alaska Airlines said it would not accept the extra costs from tariffs, which directly led to the reduction in its planned summer schedule.

Horizon Air operates all its flights with Embraer jets. The canceled flights affect routes across the Pacific Northwest, Alaska, California, Colorado, Utah, and western Canada.

Alaska Airlines focused the cuts on high-frequency routes to minimize the impact on communities with limited service. The airline has worked to rebook affected passengers on alternative flights and stated that it hopes the disruption will be brief.

The new tariffs form part of a broader effort to protect U.S. industry by raising the cost of imported goods. The aviation sector, which relies on complex international supply chains, has felt the effects.

Alaska Airlines is not alone; other U.S. carriers have also found ways to avoid or reduce tariff costs, such as rerouting aircraft deliveries through third countries before bringing them into the U.S.

Embraer Navigates Tariff Headwinds with Strong Fundamentals

Embraer, the world’s third-largest aircraft manufacturer, reported that the tariffs could reduce its 2025 operating margin by 0.9 percentage points.

The company remains confident in its annual guidance, citing strong first-quarter results and significant U.S. content in its aircraft, which may offset some tariff costs.

Embraer delivered 30 aircraft in the first quarter of 2025, with revenue up 23% year-over-year to $1.1 billion. The company expects to deliver between 77 and 85 commercial aircraft and 145 to 155 executive jets in 2025.

The tariffs have not yet affected Embraer’s commercial aviation segment, but the company has made operational changes to limit exposure, especially in its executive jet lines.

Embraer’s executives continue to call for a return to zero tariffs in aviation, stressing the industry’s global nature. This episode highlights how trade policies can disrupt business plans, supply chains, and consumer choices.

It underscores the risks companies face when international trade rules change, especially in industries with global production networks.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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