Airspace Shutdowns Hit Middle East Air Travel: Aerospace Week

This week in aerospace news: escalating geopolitical tensions disrupted aviation operations across key global corridors. Airlines suspended and rerouted flights across the Middle East following widening airspace closures after US and Israeli strikes on Iran. Despite the geopolitical instability, global air cargo demand increased 5.6% year over year in January 2026, with international demand rising 7.2% and capacity expanding 3.6%, pushing the cargo load factor to 45.1%, according to IATA.

In Mexico, the federal government is investing MX$540 million to deploy a four-satellite Earth observation constellation by 2028. Meanwhile, Mexican airline Volaris expects a gradual fleet recovery by late 2026 as Pratt & Whitney engine inspections continue, while low-cost carrier Viva reported a 7.3% decline in operating revenue for 2025.

More news below:

Global Air Cargo Demand Rises 5.6% in January

Global air cargo demand rose 5.6% year-on-year in January 2026, measured in cargo tonne-kilometers (CTK), according to the International Air Transport Association (IATA). International operations increased 7.2% compared with January 2025. Capacity, measured in available cargo tonne-kilometers (ACTK), grew 3.6% globally and 5.7% in international markets. The cargo load factor increased by 0.9 percentage points to 45.1%, indicating that demand outpaced supply growth at the start of the year.

Viva Posts 7.3% Revenue Decline in 2025

Mexico-based low-cost carrier Viva reported a 7.3% decline in total operating revenue in 2025, closing the year at US$2.3 billion, compared with US$2.5 billion in 2024. The results were disclosed in its fourth-quarter earnings report filed with the Mexican Stock Exchange (BMV). The decrease followed what management described as an exceptional prior year supported by particularly favorable market conditions.

Middle East Airspace Closures Disrupt Global Flights

Global airlines continued suspending and rerouting services across the Middle East as airspace closures widened following strikes on Iran launched by the United States and Israel. The escalation left thousands of travelers stranded and disrupted one of the world’s most connected aviation corridors. Flight-tracking data showed near-empty skies over several countries on March 2.

FAA Shuts Airspace as US Military Laser Downs CBP Drone

The Federal Aviation Administration (FAA) has closed a section of airspace in western Texas after the US military accidentally shot down a drone operated by US Customs and Border Protection (CBP), triggering renewed scrutiny over coordination among defense, homeland security, and aviation authorities. The shutdown follows the use of a laser-based counter-drone system and will remain in effect for nearly four months, according to a federal notice.

Volaris Sees Fleet Recovery by Late 2026

Mexican low-cost carrier Volaris is navigating a transition period in its fleet operations due to ongoing inspections of Pratt & Whitney engines, though management expects gradual improvement through the end of 2026. In a recent conference call with financial analysts, CEO Enrique Beltranena said, “We anticipate a more significant acceleration in aircraft returning to service as we move into the summer and the second half of the year.” He added that the airline is proactively advancing certain maintenance events to improve delivery timelines and fleet availability.

Thales Posts 18% Profit Growth on Defense Demand

Thales reported 2025 sales of US$25.6 billion, up 8.8% year over year, supported by sustained demand across its defense and aerospace segments. The company also recorded a total order intake of US$29.3 billion and closed the year with a record backlog of US$61.8 billion, providing what it described as “exceptional visibility” for future revenue.

US-Iran Conflict Escalates, US Jets Shot Down

Escalating hostilities between the United States and Iran are intensifying across the Persian Gulf, as Iranian forces launched coordinated attacks on US-linked targets in the region while a friendly-fire incident involving Kuwait resulted in the downing of three US fighter jets. The developments signal a widening conflict that, according to US President Donald Trump, could extend for “four to five weeks” or longer if necessary.

Mexico Invests US$26 Million in Four-Satellite Project

Mexico’s federal government is advancing a MX$540 million (US$26.1 million) investment to deploy a four-satellite Earth observation constellation, aiming to reduce reliance on foreign data providers while strengthening national capabilities in security and climate monitoring, according to recent reporting by Expansión. The initiative, known as the Ixtli mission, is scheduled to place its satellites in orbit by 2028 and is positioned as a cornerstone of the country’s strategy to develop domestic space infrastructure.