Overview

• AerCap CEO Aengus Kelly predicts a worst-case scenario where Boeing 787 prices rise by $40 million due to proposed 25% tariffs on materials like steel and aluminum.
• The price hike could make Boeing aircraft less competitive, prompting airlines to consider Airbus, which may gain up to 80% of the global market share if tariffs persist.
• Boeing's supply chain, which relies heavily on imported parts from countries like Canada and Mexico, faces increased costs and potential disruptions from the tariffs.
• European Union retaliatory tariffs on U.S. goods could further increase Boeing's costs in key markets, while Airbus benefits from its U.S.-based facilities and diversified supply chain.
• Despite these challenges, AerCap notes improvements in Boeing's product quality, reliability, and safety over the past year, as the company works toward recovery from prior production setbacks.