Mexico Air Cargo Up 6.5%; SCJN Reviews Airline Disputes

This week in aerospace news: Mexico’s Supreme Court will hear cases involving major airlines, while labor payments for former Interjet workers continue under the CTM. Air cargo in Mexico rose 6.5% in 1Q26 despite high emissions intensity.

Meanwhile, Volaris faces two additional years of GTF engine disruptions affecting 25 aircraft. Airbus invested US$34.5 million in Queretaro. Gulf airlines have recovered 82% of flights following easing regional tensions. Lower jet fuel costs resulting from a US–Iran deal are not expected to translate into lower airfares.

More news below:

Safran Shifts Mexico Strategy Toward Engineering Focus 

Safran is shifting the focus of its expansion in Mexico from manufacturing capacity to engineering, design, and talent development, as the French aerospace supplier seeks to strengthen higher-value operations after 35 years in the country. The company, which employs more than 15,000 people and operates 20 production facilities in Mexico, said attracting and retaining specialized engineers has become one of its main challenges as it expands research, design, and maintenance capabilities. 

Airlines Face High Fares Despite Lower Jet Fuel Costs 

Airlines are expected to benefit from lower jet fuel costs following an interim US–Iran peace deal. However, industry pricing data and carrier guidance indicate that ticket prices are likely to remain elevated, as companies prioritize margin recovery over fare reductions amid constrained capacity and uneven demand recovery. 

Mexico Top Court to Hear Cases Involving Major Airlines 

The Supreme Court of Justice of the Nation (SCJN) is scheduled to review four major legal disputes affecting the Mexican aviation sector, involving Aerovías de México (Aeroméxico), ABC Aerolíneas (Interjet), the military-operated Mexicana de Aviación, and the Federal Air Transport Command at Felipe Ángeles International Airport (AIFA). The upcoming judicial reviews coincide with the Confederation of Mexican Workers (CTM) carrying out its third consecutive round of outstanding labor payments to former Interjet employees. 

Gulf Airlines Restore 82% of Flights After Iran Conflict 

Gulf airlines are restoring operations after nearly four months of disruption caused by the Iran conflict, with flight activity recovering to 82% of pre-war levels as a ceasefire agreement between the United States and Iran improves prospects for regional aviation. Data from  Flightradar24 shows several carriers have already returned to or exceeded their flight volumes recorded on Feb. 27, the day before the conflict began, while industry analysts say a full reopening of regional airspace could allow airlines to resume normal operations and support broader economic activity across the Gulf. 

SpaceX Shares Fall 7% After Post-IPO Rally Fades 

Shares of SpaceX fell 7% on June 19, extending a two-day decline that followed a strong post-IPO rally. The move came after the stock’s initial surge pushed its valuation above several major U.S. technology companies before a subsequent pullback erased part of those gains. The company priced its initial public offering at US$135 per share, and shares had risen more than 40% from the IPO level before the recent losses. 

Brazil Could Become Leading SAF Hub: IATA 

The International Air Transport Association (IATA) used its 82nd Annual General Meeting in Rio de Janeiro to highlight Brazil’s potential to become a global sustainable aviation fuel (SAF) production hub, citing its biomass resources, ethanol industry, and refining base as key drivers of aviation decarbonization. IATA said airlines will require around 500 million tonnes of SAF to achieve net-zero CO₂ emissions by 2050, placing significant pressure on global supply expansion. Brazil has one of the largest biomass feedstock potentials globally, estimated at 180 million tonnes by 2050, capable of producing around 60 million tonnes of SAF. 

Monterrey Airport Sees 1.3% Rise in International Traffic 

Monterrey International Airport handled 618,636 passengers between June 1 and June 15, including 101,238 international travelers, according to operator Grupo Aeroportuario Centro Norte (OMA). The result reflects a 1.3% increase in international traffic and positions the airport as a key entry point in northern Mexico during early activity linked to the 2026 FIFA World Cup period. 

Volaris, SECTUR Promote Mexico With “El Embajador” Jet 

Volaris and Mexico’s Ministry of Tourism (SECTUR) have introduced “El Embajador,” a branded aircraft that will promote the country across North, Central, and South America as part of the National Tourism Promotion Strategy 2026. The aircraft, featuring the “Mexico Is in Fashion” branding, will operate for the next eight months as a platform to showcase Mexico in international markets, while the airline continues expanding its network with more than 35 new routes this year. 

Trump Introduces Interim Air Force One Amid Boeing Delays 

President Donald Trump unveiled a newly modified Boeing 747-8 aircraft on Friday during a ceremony at Joint Base Andrews, presenting the luxury jumbo jet as an interim addition to the Air Force One fleet. The aircraft, valued at an estimated US$400 million, was transferred to the US Department of War in May 2025 as an unconditional gift from the royal family of Qatar. It will serve as a temporary presidential transport while aerospace manufacturer Boeing works to resolve production delays affecting the delivery of the permanent replacement fleet. 

SpaceX Signs US$6.3 Billion Deal With Reflection AI 

Reflection AI will pay SpaceX US$150 million per month beginning July 1, 2026, for access to Nvidia GB300 chips and related hardware housed at the Colossus 2 data center. The contract includes a provision allowing either company to terminate the agreement with 90 days' notice after the first three months. 

Volaris Sees Long-Term Impact From GTF Engine Issues 

Volaris expects inspections of Pratt & Whitney geared turbofan (GTF) engines to continue for at least two more years, keeping 25 aircraft grounded and extending operational constraints that have affected capacity planning across the airline industry. The situation reinforces the strategic rationale behind the proposed holding company with Viva, as both carriers navigate engine-related disruptions, fuel cost volatility, and regulatory scrutiny surrounding their planned merger. 

Mexico Air Cargo Rises 6.5% Despite Higher Emissions 

Mexico’s air cargo sector continued expanding in 2026, with freight volumes rising 6.5% year over year to 300,731.1 tons during the first quarter, even as industry data highlighted the environmental trade-offs associated with aviation logistics. According to emission factors compiled by the International Energy Agency (IEA), transporting goods by air generates approximately 602 grams of CO₂ per ton-kilometer, making air freight up to 75 times more carbon-intensive than maritime transport, which emits about 8 grams per ton-kilometer.  

AICM Cuts Taxi Fares, Adds Uber and DiDi Pickup Zones 

Mexico City International Airport (AICM) is reducing authorized taxi fares through a new incentive program while introducing designated pickup zones for ride-hailing platforms such as Uber and DiDi, marking a significant shift in its ground transportation policy ahead of the 2026 FIFA World Cup. 

Airbus Invests MX$646.7 Million to Grow Queretaro Operations 

Airbus has expanded its manufacturing facility in Queretaro with an investment of MX$646.7 million (US$34.5 million) and the creation of 262 jobs, increasing production capacity for aircraft doors and helicopter components as the company works to meet rising global demand for commercial aircraft and achieve higher production targets by 2027. 

SpaceX Valuation Tops Amazon Amid AI Infrastructure Push 

SpaceX briefly surpassed Amazon in market capitalization during the June 18 trading session, highlighting a shift in investor focus toward companies positioned to provide infrastructure for artificial intelligence. The aerospace company reached a valuation of approximately US$2.6 trillion after its shares gained 4.83% to US$201.80 on their third day of trading on the New York Stock Exchange, placing it among the world's largest publicly traded companies before closing the session roughly in line with Amazon and ahead of Meta and Tesla.

Mexico Shifts Defense Spending Toward Airlift Capabilities 

The Mexican Ministry of National Defense (SEDENA) has established a comprehensive force development plan extending through 2050 that outlines the modernization of the Mexican Army, Air Force, and National Guard. Speaking at a Tuesday press conference led by President Claudia Sheinbaum, Defense Minister General Ricardo Trevilla confirmed that procurement during the current federal administration will prioritize cargo aircraft, personnel transports, and helicopters over the acquisition of new fighter jets. 

Finland Enhances F-35 Strike Power With New US Weapons 

The Finnish Ministry of Defence announced on Thursday that it has authorized the procurement of GBU-53/B Small Diameter Bomb II (SDB II) precision-guided glide bombs from the United States. The acquisition will add an air-to-ground capability to the Finnish Air Force’s future fleet of 64 Lockheed Martin F-35A Lightning II fighter jets, supplementing a prior weapons contract finalized in 2023.