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$40 Million Price Hike: Boeing 787 Costs Soar with Tariffs

In a worst-case scenario, tariffs could increase the price of a Boeing 787 by $40 million. This scenario assumes a 25% tariff increase across the board, resulting from a tit-for-tat trade war. AerCap CEO Aengus Kelly stated that such a price surge would likely drive airlines to Airbus, potentially allowing Airbus to capture 75% to 80% of the global market. Last year, AerCap, the world’s largest aircraft leasing company, purchased 150 aircraft, helicopters, and spare engines from Boeing. Despite recent tariff tensions, including a new 25% tariff on steel and aluminum imports, Kelly remains optimistic about Boeing’s future. He noted significant improvements in the quality, reliability, and safety of Boeing’s products over the past year. Looking ahead to 2025, Kelly emphasized that Boeing needs cash to ensure reliable aircraft delivery.

Source: www.cnbc.com

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