Commercial plane prices are set to rise as aviation giants are facing added pressure amid US President Donald Trump’s tariff push against global trade.
The cost of planes has already soared by about 30 per cent since 2018, largely due to post-pandemic supply chain issues and rising input costs. Additionally, materials like titanium, energy and essential components have become significantly more expensive.
The situation has been further aggravated by geopolitical factors, including the exclusion of Russian titanium suppliers from the US market.
“Anything titanium… especially since all that Russian capacity has been cut off from the US and, to a lesser extent, from Europe” has inflated at a particularly high rate,” said Richard Aboulafia, managing director at AeroDynamic Advisory.
Aboulafia estimates that material and equipment costs have climbed by about 40 per cent since 2021. He also pointed out the impact of US President Donald Trump’s 25 per cent tariffs on steel and aluminium, which are crucial for aircraft production. “It’s kind of ironic, raw materials were not a problem, but Donald Trump is determined to make them a problem,” he said.
Labour costs are also playing a major role in driving up prices. Boeing recently signed a new contract with its Seattle machinists’ union, raising wages by 38 per cent over four years. Spirit AeroSystems, a key supplier to both Airbus and Boeing, agreed to a similar wage hike earlier.
Editor-in-chief at Aircraft Value News John Persinos claimed that inflation in aviation is worsening and warned, “these tariffs are disastrous.”
Despite the price surge, official catalogue listings from both Boeing and Airbus have not kept pace. Boeing hasn’t updated its list since 2023, while Airbus has stuck with 2018 figures.
However, catalogue prices are widely considered unreliable. “Catalogue prices were a complete work of fiction,” said Aboulafia. “You got 50 per cent off for showing up dressed nicely.”
Airbus confirmed it abandoned catalogue pricing because the final cost is highly variable depending on the aircraft’s configuration and other negotiated factors like pilot training and maintenance support.
Contracts also typically include inflation-linked adjustments and can be modified if there are delivery delays or currency fluctuations.
In February 2025, All Nippon Airways placed a major order for 77 aircraft from Boeing, Airbus, and Embraer, offering a rare glimpse into updated pricing. As per AFP calculations, the Boeing 787 Dreamliner was priced at around $386 million, a significant jump from $292 million in 2023. The 737 MAX was listed at $159 million, up from $121.6 million, while the Airbus A321neo rose to $148 million from $129.5 million in the 2018 catalogue.
Despite these rising costs, aircraft pricing remains competitive due to intense rivalry between Boeing and Airbus. As the aviation expert explained, “The two companies fight for every transaction and that impacts pricing.”