ACA Warns of Price Hike Due to Tariffs on Inflight Catering

‍DALLAS — The Airline Catering Association (ACA) warns that the cost of making your inflight meal might bump your ticket price. It blames the U.S. administration's recently proposed tariffs on in-flight catering supplies. 

The Belgium-based association, representing the world’s top inflight catering firms and employing "84,000 people and serving more than 1.4 billion passengers” annually, warns that duties of 10–25% on food ingredients, packaging materials, and specialized equipment could harm a sector recovering from the pandemic.

Increased Prices, Increased Fares

According to the ACA, about 40% of a caterer's supply expenditure goes toward imported metal trays, premium plastics, and gourmet foods. The planned tariffs are expected to increase industry-wide costs by around US$200 million in the first year alone. 

Even a US$1.50 increase in the cost of food per passenger might result in a US$5 increase in ticket costs because airlines operate on margins defined in cents per passenger.

Service Cuts, Job Losses Loom

Fabio Gamba, ACA Managing Director, cautioned that “tariffs on food ingredients, packaging materials, and specialized equipment will undoubtedly drive up ticket fares and onboard service costs. This approach “risks undermining consumer confidence in air travel,” leading to a reduction in bookings “which will jeopardize tens of thousands of catering jobs worldwide.” 

ACA says some members “report cancelled transborder routes and blocked access to key U.S.‑based suppliers, forcing a shift to more expensive alternatives.”

Consequences for Air Transportation

The ACA emphasizes that cost pressures will affect the entire air transport ecosystem, not only in-flight catering. To absorb the price shocks, caterers may need to reduce workers, condense menus, or combine kitchens; this could negatively impact both local jobs and the overall passenger experience.

Demand Cooperation

The ACA advises the U.S. government to take a step back and have "constructive dialogue" with industry stakeholders rather than jeopardizing one of the travel economy's fastest-growing sectors.

"Let us seek more intelligent, focused solutions that boost U.S. competitiveness without penalizing travelers or carriers—our doors are open," Gamba continued.

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