Alaska Air Group, the parent company behind Alaska Airlines and Horizon Air, is confronting new operational hurdles driven by increased costs linked to recently enacted tariffs. In response, the company has postponed the delivery of two Embraer E175 regional jets and adjusted its flight schedule, reflecting the broader financial pressures facing the aviation sector amid shifting trade policies.
Originally slated for delivery in May 2025, the two Embraer jets were intended to bolster Horizon Air’s fleet, which serves numerous regional routes across the western United States and parts of Canada. However, a 10% import tariff imposed on Brazilian-manufactured goods, including Embraer aircraft, has compelled Alaska Air Group to delay taking possession of these planes. This tariff, introduced as part of a wider U.S. trade strategy targeting multiple countries, has raised the cost of importing these essential aircraft.
As a direct consequence, Horizon Air has announced cancellations of approximately 14 flights daily through the end of July 2025. These reductions focus on routes with several daily flights, enabling the airline to consolidate operations and rebook passengers on alternative services with limited inconvenience. This careful adjustment is designed to maintain service quality while managing capacity constraints due to the delayed fleet expansion.
The postponement of new aircraft deliveries and the resulting cutbacks in flights underscore the broader challenges airlines face when external economic factors disrupt growth plans. Fleet expansion is a critical driver for airlines to meet increasing demand and optimize their route networks. Without timely access to new aircraft, airlines must balance operational efficiency against customer expectations and market opportunities.
The tariffs affecting Embraer jets are part of a broader wave of trade measures rolled out by the U.S. government in early April 2025. These measures impose additional duties on imports from various countries across multiple industries, including automotive, steel, aluminum, and aviation equipment. While some trade partners have negotiated exemptions or temporary relief, others continue to face full tariff rates, complicating supply chain management for companies dependent on international sourcing.
Embraer, the Brazilian aerospace manufacturer, has advocated for the removal of tariffs on aviation products, emphasizing that such duties hinder supply chain efficiency and inflate costs for airlines and manufacturers alike. The global aerospace industry relies heavily on cross-border trade and collaboration, making open and predictable trade policies essential for sustained growth and competitiveness.
In a related development, a recent trade agreement between the United States and the United Kingdom exempts Rolls-Royce aircraft engines and related aviation components from the 10% tariff applied to UK imports. This targeted exemption highlights the importance of aviation-specific considerations within broader trade policy frameworks and the strategic value placed on critical aerospace technologies.
Alaska Air Group’s experience reflects the delicate balance airlines must maintain in navigating economic uncertainty fueled by changing trade dynamics. Tariffs can quickly alter cost structures, forcing airlines to reconsider capital investments, delay fleet renewals, or reduce flight offerings, all of which can ripple through passenger demand and operational performance.
By deferring aircraft deliveries and strategically trimming flight schedules, Alaska Air Group is managing its exposure to these tariff-driven challenges while striving to minimize passenger disruption. This approach offers flexibility to respond to future trade policy developments and market conditions.
Moving forward, ongoing cooperation among governments, manufacturers, and the aviation industry will be crucial to fostering stable trade environments that support innovation, growth, and global connectivity. Meanwhile, airlines like Alaska Air Group must continue adapting to a complex landscape where economic, political, and operational factors intersect.
