October 24, 2019 / 3:28 PM / a month ago

Spirit says working with Airbus, trade representatives on tariff impact

FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse, France, November 6, 2018. REUTERS/Regis Duvignau

CHICAGO (Reuters) - Spirit Airlines (SAVE.N) said it is working with Airbus SE (AIR.PA) and trade representatives to mitigate the impact of U.S. tariffs on European-made aircraft but does not see a near term impact on its overall cost structure.

Speaking on a conference call, a Spirit executive said its remaining Airbus deliveries for 2019 and its first nine firm orders to be delivered by mid-2020 will come from Airbus’ factory in Mobile, Alabama, which is not subject to the tariffs.

The U.S. budget carrier unveiled on Wednesday a provisional deal to order 100 Airbus A320neo-family jets to be delivered through 2027, becoming the first U.S. airline to pick European planes since Washington imposed a 10% tariff.

Reporting by Tracy Rucinski

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