China’s Juneyao Airlines has announced a delay in the delivery of a Boeing 787-9 Dreamliner, valued at approximately $120m.
This decision is attributed to the increasing tariffs imposed by the US on Chinese goods, as reported Bloomberg citing sources familiar with the situation.
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The move was aimed at addressing trade imbalances and responding to China’s actions regarding US import taxes.
Following this, China announced a significant increase in tariffs on US goods, which will rise to 125%. With the cumulative effect of these tariffs, the total rate of US tariffs on Chinese goods has reached 145%.
Juneyao Airlines was originally scheduled to receive the aircraft in three weeks but has opted to postpone the delivery in light of the current trade tensions between Washington and Beijing.
The airline has not provided a comment on the matter, and Boeing has also refrained from making any statements.
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By GlobalDataJuneyao Airlines operates a fleet of more than 100 aircraft, primarily consisting of Airbus SE single-aisle jets, alongside nine Boeing 787s.
The airline intended to utilise the Boeing 787-9 to expand its long-haul routes, particularly to European destinations such as Brussels and Athens, starting in the summer of 2025.
However, the delay in delivery poses a risk to these expansion plans, as the additional routes were contingent on the timely arrival of the new aircraft.
The announcement of the delivery delay has had an immediate impact on Boeing’s stock, which saw a decline of approximately 2%, indicating investor concerns regarding the implications of the trade situation.
Boeing has cautioned that a worsening trade dispute could further impact supply chains, which have been significantly strained since the pandemic and are only just beginning to show signs of recovery.
Last month, Akasa Air, India’s low-cost carrier, announced that it is facing operational challenges due to delays in Boeing’s 737 MAX deliveries, hindering its expansion and leaving many pilots idle.
These delays stem from regulatory scrutiny and a recent workers’ strike at Boeing.
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