MONEYWATCH
Tariffs are causing Alaska Airlines to cancel flights. Here's why.

By Megan Cerullo
Edited By Anne Marie D. Lee
Updated on: June 5, 2025 / 7:01 AM EDT / CBS News

Alaska Airlines is canceling more than a dozen flights a day as tariffs hinder its ability to accept delivery of new aircraft, according to the carrier.

The Seattle, Washington-based airline said it wouldn't immediately accept delivery of two Embraer 175 regional jets in order to avoid incurring the extra tariff-related costs. The aircraft were meant to serve Horizon Air, a regional subsidiary of Alaska Airlines.

President Trump's tariff agenda has upended supply chains for a range of businesses, and has forced many companies to raise prices on consumers in order to protect their margins. The aviation industry has also warned that the levies will affect its business.

"We deeply regret the impact this situation will have on our guests this summer," Alaska Airlines said in a statement to CBS News Wednesday. … "Amid the ongoing uncertain economic environment, we are focused on controlling what we can control — including costs, productivity, operational performance and taking care of our guests to the best of our ability. As part of this effort to control our costs, Alaska will not accept additional costs imposed by tariffs throughout our supply chain," it added.

Without the new aircraft, Alaska said it must cancel 14 flights a day through the end of July. Horizon operates all of its flights on Embraer jets. Alaska operates an all-Boeing fleet.

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