Aircraft production costs are poised for a steep climb. A commercial jet contains over 2 million parts, many sourced internationally, and tariffs on aluminum and steel could increase costs for key components like avionics, landing gear, and engines by 5% to 10%. That translates to an estimated $3 to $5 million increase per aircraft—a cost burden that airlines won’t absorb lightly.
How Tariffs Could Impact Airfare and Budget Airlines
While the immediate effects may not be felt at the check-in counter, passengers will eventually bear the brunt. With airlines facing steeper expenses for fleet expansion and maintenance, industry analysts predict airfare changes due to tariffs could rise 2% to 4% over time. Long-haul international flights are expected to increase sharply, putting extra pressure on travelers’ wallets.
For low-cost carriers (LCCs), the stakes are even higher. Built on tight margins and razor-thin operational costs, budget airlines have little room to maneuver when faced with supply chain disruptions and price hikes. The tariffs could force these carriers to raise ticket prices—eroding their competitive edge—or cut costs elsewhere, potentially compromising service quality and route availability.
Bush-Era Tariffs as a Blueprint
This isn’t the first time the airline industry has faced turbulence from trade policies. When President George W. Bush imposed steel tariffs in 2002, aircraft maintenance costs spiked almost immediately. Airlines struggled with pricier replacement parts and service fees, squeezing profits in an already volatile industry. If history repeats itself, Trump’s trade policies airlines could once again create financial turbulence for carriers already battling fluctuating fuel prices and evolving consumer demands.
A Global Industry in the Crosshairs
The consequences extend beyond U.S. airspace. International trading partners will likely retaliate, triggering potential supply chain bottlenecks, delivery delays, and higher leasing costs.
Many airlines depend on aircraft financing and secondary markets for leased jets, so a tightened supply chain could leave carriers scrambling for available planes, leading to further price hikes for consumers. The airline industry and trade tariffs are intrinsically linked, as global trade dynamics shape the future of air travel.
As the March 12 deadline looms, the airline industry is bracing for impact. Whether through increased fares, squeezed profit margins, or operational hurdles, the effects of these tariffs will be felt across the board. Trump trade moves travel impact is becoming clearer as aviation experts analyze potential setbacks. The U.S. trade policies in the aviation sector are in flux, and while the full scope remains uncertain, one thing is clear: flying may soon become a more expensive endeavor for airlines and passengers alike.
With airfare prices set to climb due to rising operational costs, travelers may need to rethink how they book flights. Airlines facing financial strain could reduce budget-friendly options, making affordable travel harder. However, securing great deals isn’t impossible—you just need the right tools.
OneAir is a private, AI-powered, members-only travel app that gives you exclusive access to hidden rates on top hotels and flights worldwide—saving you up to 60%. Sign up for OneAir today and start booking smarter.
For more travel news, visit our blog here.
