Tariffs and labour costs push jet prices higher as Boeing and Airbus navigate turbulent skies

Aviation giants are facing additional pressure against US President Donald Trump’s tariff push against global trade, determined to increase commercial aircraft prices.
The cost of aircraft has already increased by about 30 percent since 2018, due to large-scale post-pandemic supply chain issues and rising input costs. Additionally, materials such as titanium, energy and essential components have become much more expensive.
The situation has been further enhanced by geo -political factors, including exclusion of Russian titanium suppliers from the US market.
Richard Abulaphia, managing director of the aerodynamic advisory, said, “Anything Titanium … especially since the Russian capacity has been cut off from the US and is inflated to some extent, especially at a higher rate from Europe,” said Richard Abulaphia, managing director of aerodynamic advisory.
Abulaphia estimates that the cost of material and equipment has increased by about 40 percent since 2021. He also indicated US President Donald Trump’s impact of 25 percent tariffs on steel and aluminum, which are important for aircraft production. “It’s irony, raw materials were not a problem, but Donald Trump is firm to make him a problem,” he said.
Labor costs are also playing a major role in increasing prices. Boeing recently signed a new contract with its Seattle Machinist Association, increasing wages of 38 percent in four years. Spirit Aerosystems, a leading supplier for both Airbus and Boeing, first agreed to increase a similar wage increase.
Aircraft Value News In John Persino, Editor-in-Chief claimed that inflation in aviation was deteriorating and warned, “These tariffs are disastrous.”
Despite the price increase, the official catalog listing from both Boeing and Airbus has not moved. Boeing has not updated its list since 2023, while Airbus is stuck with 2018 figures.
However, catalog prices are widely considered incredible. “Catalog prices were a complete task of imagination,” said Abulafia. “You got a 50 percent discount to show you well dressed.”
Airbus confirmed that this catalog pricing had been abandoned as the final cost is highly variable based on the aircraft’s configuration and other interaction factors such as pilot training and maintenance support.
Contracts usually include adjustments associated with inflation and can be modified if there is a delay in delivery or currency fluctuations.
In February 2025, all Nippon Airways gave a major order for 77 aircraft from Boeing, Airbus and Ambrear, which offers a rare glimpse in updated pricing. According to AFP calculations, the Boeing 787 Dreamliner was priced around $ 386 million, a significant jump in 2023 from $ 292 million. 737 Max was listed at $ 159 million, which was above $ 121.6 million, while Airbus A321NE 2018 increased from $ 129.5 million to $ 148 million in Catalogs.
Despite these rising costs, aircraft pricing remains competitive due to acute rivalry between Boeing and Airbus. As the aviation expert explained, “Both companies fight for every transaction and it affects pricing.”