“Compared with 2018, prices for commercial jets have risen by around 30 percent,“ an aviation expert told AFP on condition of anonymity.
To resolve a labor strike, Boeing late last year agreed to a new contract with its Seattle-based machinist union that lifted wages by 38 percent over four years.
Richard Aboulafia, managing director at consultancy AeroDynamic Advisory, said items that have inflated “at a particularly high rate” include castings, forgings and “anything titanium... especially since all that Russian capacity has been cut off from the US and, to a lesser extent, from Europe.”
“It’s kind of ironic, raw materials were not a problem, but Donald Trump is determined to make them a problem,“ Aboulafia said.
What's more, the newer generation of planes, such as the Boeing 737 MAX and 787 Dreamliner and the Airbus A321neo, can command premium prices thanks to their lower fuel consumption.
The impact of tariffs is not reflected in the companies' stale official pricing literature.
“Catalogue prices were a complete work of fiction,“ Aboulafia said. “You got 50 percent off for showing up dressed nicely.”
The aerospace companies will often negotiate additional services such as plane support or training at a discounted level when aircraft are delivered, said the expert who requested anonymity.
Contracts for new planes typically include adjustment clauses for inflation, while pricing can also be tweaked if deliveries are delayed.
Boeing told AFP that it evaluates price based on production costs and other market factors, but does not discuss the details publicly since they pertain to competition.
“It’s a very competitive situation,“ said the expert. “The two companies fight for every transaction and that impacts pricing.”
“Before Covid, Boeing and Airbus competed for a market where prices were really lower, maybe even too low,“ said Manfred Hader of consultancy Roland Berger.
In February, Japanese carrier ANA ordered 77 planes from Boeing, Airbus and Brazilian firm Embraer, providing updated catalogue prices that show an increase from earlier levels.
It priced the Airbus A321neo at around $148 million compared with the $129.5 million in the 2018 catalogue.
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