EU Carbon Expansion Triggers Backlash: The Week in Aerospace

In this week’s aviation news, international backlash mounted over proposed EU carbon market reforms. Meanwhile, GE Aerospace achieved a milestone high-altitude hybrid-electric flight. In Mexico, Volaris and Aeroméxico faced sharp financial headwinds from surging fuel costs and market contractions, while foreign investments surged as ATI Materials and Regal Rexnord expanded manufacturing operations in Chihuahua.

Cleared for takeoff– This Week in Aerospace!

Regal Rexnord, Chihuahua Reaffirm Investment at Farnborough

Chihuahua Governor Maria Campos met with top executives from industrial manufacturer Regal Rexnord  at the Farnborough International Airshow to reaffirm a strategic partnership aimed at expanding aerospace manufacturing in Northern Mexico.

Aeroméxico Market Cap Drops 18% Months After Listing

Eight months after executing a dual listing on the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE), Grupo Aeroméxico has recorded an 18% decrease in its overall market capitalization. The contraction highlights broader financial and geopolitical friction impacting commercial aviation worldwide.

Volaris Net Loss Doubles in 2Q26 as Fuel Costs Surge 70%

Mexican ultra-low-cost carrier Volaris experienced a steep widening of its net losses in 2Q26, driven by a 70% spike in jet fuel prices linked to ongoing geopolitical conflict in the Middle East. Despite robust passenger growth, ticket price increases, and higher overall revenues, the surging cost of fuel continued to erode the airline’s operating margins.

EU Carbon Market Expansion Triggers Backlash From ICAO and IATA

A controversial proposal by the European Commission to overhaul the European Union Emissions Trading System (EU ETS) has drawn swift opposition from aviation leaders, international regulators, and environmental advocates.

ATI Materials Secures US$80 Million Facility Deal in Mexico

High-performance materials producer ATI Materials has committed US$80 million to establish and operate a new manufacturing division, ATI Forged Products, in Chihuahua City, Mexico.

GE Aerospace Achieves First High-Altitude Hybrid Flight

GE Aerospace announced a series of advancements in hybrid-electric and advanced propulsion technologies at the Farnborough International Airshow, headlined by the completion of the aviation industry’s first high-altitude flight assisted by a megawatt-class hybrid-electric propulsion system.