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US Airlines Struggle with Tariff Fallout as European Carriers Thrive

Trump-era tariffs and supply-chain challenges weigh heavily on US aviation, while European airlines benefit from lower fuel costs and higher demand.

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Overview

  • US airlines face the weakest global revenue growth forecast of just 1% for 2025, according to Allianz Trade.
  • Domestic US flight load factors have dropped to 78%, a 6-point decline since the implementation of Trump-era tariffs.
  • Tourism from Canada and Mexico, which accounts for over half of US international visitors, has fallen significantly due to tariff-related caution.
  • European airlines are projected to achieve 10% revenue growth in 2025, driven by lower fuel costs and sustained high ticket prices.
  • Aircraft manufacturers are grappling with a record backlog of 17,000 jets, ongoing supply-chain disruptions, and rising production costs, with prices expected to increase by 20% by 2030.