Scott Kirby, the chief executive of United Airlines, has just come out as a surprise supporter of President Trump’s foreign trade tariffs despite the fact that his company’s stock has taken a pummeling in the aftermath of the administration’s announcement on Wednesday.
Speaking at a special event at San Francisco International Airport on Thursday, Kirby went off script in classic Trump style, saying that the goal of the tariffs was a “laudable one.”
“Some may disagree with the way and tactics, but the goal, I think, is a laudable one,” Kirby said of the Trump administration’s plan to charge tariffs ranging from a baseline of 10% to as much as 50% on dozens of countries and territories.
While the impact of the tariffs on the US and global economy remains unclear, especially in the short term, Kirby said the plan was part of a “genuine desire to create more careers.”
Speaking with Matthew Klint of the Live and Let Fly blog on the sidelines of the event, Kirby said that he hadn’t intended to talk about the tariffs and admitted that other airline CEOs would probably be a lot less candid about the Trump administration’s economic strategy.
During the Biden administration, United appeared to side with traditionally Democrat causes, but following Trump’s success at the polls, the airline donated $1 million to Trump’s inauguration, and Kirby has positioned himself as a supporter of the President.
Following the shock of Trump’s so-called Liberation Day announcement, US airline stock took a battering, with United being hit hardest with a 10% drop on Thursday. Rivals American Airlines and Delta Air Line saw their stock fall by a slightly more modest 7%.
Both American Airlines and Delta have already warned of slowing demand on domestic routes, although the carriers have been careful not to point the finger of blame as to why Americans are choosing to withhold discretionary spending on air travel.
For the time being, Delta says that demand for international travel remains robust and within its previously announced forecasts, although partner Virgin Atlantic says there are no signs of slowing demand on transatlantic routes, especially from the United States to Europe.
United Airlines is expected to release its Q1 financial results on April 15, and the airline continues to expand its global route network. On Wednesday, the airline announced a slew of new routes to Bangkok, Hi Chi Minh City, and Adelaide, as well as an expansion of its popular flight to Manila, Philippines.
“Some may disagree with the way and tactics, but the goal, I think, is a laudable one,”
And feeding the world is a laudable goal too but you don’t give all your food away at the expense of your own countries people. Maybe a stupid analogy but just because a goal is “laudable” doesn’t mean the methods to achieve it are smart or good or beneficial. What a crock.
It is a vrry affective means of helping to reduse the trade imbalance the US has had with the rest of the world for 50 years. The end goal is no tarrifs. If tarrifs are so bad why do all of our trading partners have them and we do not? It is a great negociating tool to force open closed markts to US firms and US workers. They have no leverage with the U S. We are their customers. How do you fught back against your customer. Once they build in region and open up their markets, and the results are verifiable, reciprical tariffs go away. Very simple to see and understand. It will work. It is already working. Why would we be scared to negociate if we are the customer of these other nations?