Delta Stock Falls On Reports Of Airline Stripping Its Airbus Fleet In Europe To Power Grounded Aircraft In US

Delta Air Lines Inc. (DAL) is reportedly cannibalizing its Airbus SE (EADSY) jets in Europe for engines to fit them onto its grounded aircraft in the U.S.

According to a Bloomberg report, Delta Air Lines is stripping its European aircraft to overcome a shortage of engines as well as uncertainty resulting from President Donald Trump’s tariffs.

Delta has been taking out U.S.-made Pratt & Whitney engines from newly built Airbus A321neo jets in Europe and shipping them back to the U.S. to escape import duties, even as its European aircraft sit in the region without an engine.

Delta’s shares were down more than 3% at the time of writing.

Another reason for Delta taking this route is that these jets in Europe have not yet been certified by regulators. Once a trade deal between the U.S. and EU is struck – which could either happen via tariffs or a preliminary agreement as soon as this week – Airbus could potentially send these Airbus planes to the U.S. sans any tariffs.

Delta CEO Ed Bastian even went so far as to say that the airline does not plan on paying tariffs on aircraft deliveries, following the company’s second-quarter earnings.

The airline reinstated its 2025 profit guidance while announcing its Q2 results on Thursday, with Bastian noting that bookings have stabilized since April.

Its second-quarter (Q2) earnings per share of $2.10 topped expectations of $2.06, while revenue of $15.51 billion came in lower than the analysts' estimates $16.21 billion.

For the third quarter, Delta expects adjusted profit of $1.25 to $1.75 per share, compared to expectations of $1.34.

Delta’s stock is down nearly 9% year-to-date, but up 23% over the past 12 months.

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