Embraer Buys Safran’s EZAir Stake; Mexico Raises ATC Budget 30%

This week in aerospace news: Embraer agreed to acquire Safran’s remaining 50% stake in EZAir, gaining full ownership of the Mexico-based cabin interiors operation. Mexico’s government approved a 30% increase in SENEAM’s 2026 budget to address air traffic controller shortages through phased hiring and airspace reforms, while ASSA warned that the planned sale of the former Mexicana de Aviación MRO center lacks legal certainty due to its reliance on a verbal extension agreement.

IATA reported record global holiday travel, up 7% year over year and exceeding full-year growth trends. LATAM Airlines Group carried 87.4 million passengers in 2025, a 6.6% increase driven by Brazil’s domestic market and recovering international demand. In the United States, Delta Air Lines projected roughly 20% earnings growth in 2026, supported by strong corporate and premium travel demand.

More news below:

Ryanair Rules Out Starlink Over Cost and Fuel Concerns

Ryanair has ruled out installing SpaceX’s Starlink satellite internet across its fleet following a public dispute between the airline’s chief executive, Michael O’Leary, and Elon Musk that escalated into personal insults, takeover speculation and renewed scrutiny of the economics of onboard connectivity. O’Leary said the costs associated with Starlink — including additional fuel burn caused by aerodynamic drag — would outweigh potential revenue, while European Union rules would prevent Musk from taking control of the airline even if he sought to invest.

IATA Reports Record Holiday Travel, Up 7% From 2024

Global air travel reached record levels during the 2025 Christmas and New Year period, driven by higher passenger volumes and increased flight activity compared with the previous year. Preliminary estimates from IATA indicate approximately 270 million passenger trips worldwide between Dec. 15 and Jan. 4, covering 325 million flight segments. This represents a 7% increase over the same holiday period in 2024 and exceeds the estimated full-year growth rate of 4% to 5%.

Mexico Plans 30% SENEAM Budget Hike to Ease ATC Shortages

Mexico’s federal government has agreed to increase the 2026 budget of Servicios a la Navegación en el Espacio Aéreo Mexicano (SENEAM) by 30% and to establish a phased plan to address a shortage of air traffic controllers, according to the National Union of Air Traffic Controllers (SINACTA). Union leaders said the commitments were confirmed during the first formal working meeting with senior federal budget and transport officials, setting a framework for staffing, airspace restructuring, and compensation reviews.

Mexicana MRO Sale Faces Legal Risk, ASSA Says

The Cabin Crew Union Association (ASSA) warned that the process to sell the maintenance, repair and overhaul (MRO) center of the former Mexicana de Aviación lacks legal certainty, as a requested second extension is based only on a verbal agreement with Banorte.

Embraer to Buy Safran’s Stake, Take Full Control of EZAir

Embraer has agreed to acquire the remaining 50% stake in EZAir from France-based Safran, giving the Brazilian aircraft manufacturer full ownership of the joint venture dedicated to aircraft cabin interiors. The deal will place the Chihuahua, Mexico-based manufacturing operation entirely under Embraer’s control and strengthen its vertical integration across commercial aircraft programs. Financial terms were not disclosed.

Avianca Cuts Emissions 5.1% Despite Capacity Growth

Colombian flag carrier Avianca reduced its total carbon emissions by 5.1% between 2019 and 2024, despite an 18.1% increase in overall capacity, according to data from EmeraldSky. Over the same period, the airline cut its carbon intensity by nearly 20%, lowering emissions from 82.6 to 66.3 grams of CO₂ per available seat-kilometer.

Mexico Bets on Semiconductors, AI, and Aerospace

Mexico is deploying a strategic industrial roadmap to integrate the nation into global semiconductor, aerospace, and AI value chains. Through Plan México 2025-2030, the federal government intends to transition from assembly-based manufacturing to high-value design and development through 2030. The success of these industrial transitions depends on the availability of critical infrastructure and specialized human capital. 

The Year In Aerospace: Mexico Balances Growth, Risks Into 2026

Mexico’s aerospace sector closed 2025 at the intersection of strong demand, structural constraints and rising geopolitical risk, as airlines, airports and manufacturers navigated capacity limits, trade tensions and regulatory uncertainty ahead of the 2026 FIFA World Cup and the upcoming USMCA review.

Sonora, Latécoère to Launch Aerospace Training Academy

The government of Sonora has reached an agreement with French aerospace supplier Latécoère to advance plans for establishing a specialized aerospace training academy in Hermosillo, a move aimed at strengthening workforce development and reinforcing the state’s role within the North American aerospace supply chain. The initiative follows high-level meetings between Sonora Governor Alfonso Durazo and executives from Boeing, one of Latécoère’s main global customers.

LATAM Group Posts 6.6% Passenger Growth in 2025

LATAM Group transported 87.4 million passengers in 2025, a 6.6% increase compared with 2024, according to the company’s December operational statistics. The expansion was driven by growth in Brazil’s domestic market and a recovery in international travel demand across Latin America and the United States.

Delta Expects Strong Corporate Demand, 20% Growth in 2026

Delta Air Lines is projecting roughly 20% earnings growth in 2026, fueled primarily by sustained demand from higher-income and corporate travelers, even as pressure persists in lower-priced segments. The Atlanta-based carrier reinforced its premium-led strategy with an order for 30 Boeing 787-10 widebody aircraft, plus options for 30 more, underscoring its long-term focus on international routes and higher-yield capacity.