Air Cargo Falls 5.2% Under Tariff Pressure: Aerospace Week

This week in aerospace news: Trump’s proposed 24% NASA budget cut prioritizes Mars, jeopardizing key international projects. Correos de México resumed air mail services after a 15-year hiatus. Air cargo volumes fell 5.2% amid ongoing tariffs, though airport revenues saw growth. Bombardier reported a 19% revenue increase, while Ryanair issued a warning to Boeing over potential tariff impacts. SEMAR requested MX$2.1 billion for AICM upgrades, and Avion Express and Volaris announced plans for regional expansion.

Cleared for departure—here’s what took flight in aerospace this week!

NASA Faces 24% Budget Cut in Trump’s FY2026 Plan, Focus on Mars

President Donald Trump’s fiscal year 2026 budget proposal includes a 24% cut to NASA’s current US$24.8 billion budget, reducing the agency’s funding to US$18.8 billion. The plan cancels or scales back several flagship missions, reallocating funds to prioritize human exploration programs focused on Mars.

Correos de México Restarts Air Mail After 15 Years via Mexicana

Correos de México has resumed air mail and parcel transport after a 15-year hiatus through a strategic alliance with the state-owned airline Mexicana. The inaugural route, connecting Felipe Ángeles International Airport (AIFA) and Tijuana, aims to reduce delivery times by more than 50%, marking a significant milestone in modernizing the nation’s postal logistics infrastructure. The partnership was officially launched during a ceremony at the Postal Palace in Mexico City.

Mexico Air Cargo Falls 5.2%, Hit by Tariffs, Slow Economy

Between January and April 2025, Mexico’s air cargo sector reported a 5.2% year-on-year decline, moving 282,278.9 tons during the period, according to data from the Federal Civil Aviation Agency (AFAC). This drop was primarily driven by a 6.8% contraction in international cargo, which fell to 193,449.7 tons, down from 207,503.6 tons in the same period last year.

AIFA Director Flags Delays, Bottlenecks in Military Leadership

The Director General of the Felipe Ángeles International Airport (AIFA), Brigadier General (retired) Isidoro Pastor, issued an internal memorandum in February 2025 addressing significant coordination issues within the airport’s military command structure. The memo, addressed to AIFA’s legal department and obtained by Reforma, highlights a persistent lack of effective communication and operational alignment that is hampering decision-making processes.

US Low-Cost Airlines Struggle as Leisure Demand and Tariffs Hit

US low-cost airlines are facing increasing financial pressure as demand for domestic leisure travel weakens and economic uncertainty tied to President Donald Trump’s trade tariffs disrupts consumer confidence.

Mexico's Airports See 1Q25 Revenue Rise Despite Traffic Shifts

Mexico’s three major airport operators—Grupo Aeroportuario del Sureste (ASUR), Grupo Aeroportuario del Pacífico (GAP), and Grupo Aeroportuario del Centro Norte (OMA)—reported revenue growth in 1Q25, despite varying passenger traffic trends and business performance indicators.

Bombardier Revenue Up 19% in 1Q25, CEO Sees Tariff Opportunity

Bombardier reported a 19% revenue increase for 1Q25, driven by higher aircraft deliveries and continued growth in aftermarket services. The Canadian business jet manufacturer posted US$1.52 billion in revenue and a net income of US$68 million.

Lithuanian Airline Avion Express Targets Latin America via Mexico

Lithuanian airline Avion Express is set to expand into Mexico as part of its strategy to enter the broader Latin American market. The airline has begun the process of obtaining an Air Operator Certificate (AOC) in Mexico, a procedure expected to take up to 24 months.

Volaris, TagAirlines Partner to Boost Mexico-Central America Link

Volaris and TagAirlines have signed a codeshare agreement to enhance air connectivity between Mexico and Central America.  The announcement was made during the Tianguis Turístico México 2025, held in Tijuana. 

Ryanair Threatens Boeing Order Over Tariffs, Eyes COMAC

Ryanair has warned Boeing it may cancel an order for 333 Boeing 737 MAX aircraft—valued at approximately US$30 billion—if tariffs significantly increase the final cost.

SEMAR Seeks MX$2.1 Billion for AICM Terminal 1 Upgrade by 2026

Mexico’s Ministry of the Navy (SEMAR) has formally requested MX$2.1 billion (US$125 million) from the Ministry of Finance (SHCP) to upgrade Terminal 1 of Mexico City International Airport (AICM). The proposed improvements aim to address infrastructure, security, and operational challenges at the country’s busiest airport, aligning with several  recommendations from the International Air Transport Association (IATA).