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.

Enrique Beltranena, president and CEO, Volaris, said the airline continues to manage the impact of the Pratt & Whitney engine recall program, which has forced airlines worldwide to remove aircraft from service for inspections and maintenance.

“The review of the Pratt & Whitney engines affecting the Volaris fleet will continue for at least two more years,” Beltranena said during an event at Felipe Ángeles International Airport. He added that 25 aircraft remain grounded due to the inspections, although he expects that number to decline toward the end of 2026 as engines return to service.

The prolonged inspection program remains one of the most significant operational challenges facing Volaris. However, Beltranena said passenger traffic has remained stable despite reduced fleet availability. “Traffic is holding up, and we have made a very important effort through pricing, offering more products, and launching new routes that connect key markets,” he said.

According to the company, load factors remain between 82% and 83% on domestic routes and between 88% and 89% on international services, helping Volaris maintain passenger volumes despite capacity constraints.

Beltranena also noted that more than 40% of the airline’s routes face no direct competition, a position he attributed to collaboration with federal and state tourism authorities and regional governments.

“We have maintained our promise to keep flying and remain present despite difficult circumstances and a very challenging year. Our traffic volume has remained stable, and we believe it can be sustained and improve somewhat toward the World Cup,” he said.

The comments come as Mexico’s airline sector prepares for increased travel demand associated with the 2026 FIFA World Cup. According to Monex, passenger traffic in Mexico is expected to grow an average of 5.9% during 2026. The brokerage forecasts passenger growth of 6.9% for Volaris, 6.1% for Viva, and 4.4% for Aeroméxico.

Monex analysts expect low-cost carriers to capture a significant share of domestic travel demand through route optimization and selective capacity deployment, while Aeroméxico is expected to benefit more from international travelers, corporate delegations, sponsors, and media organizations attending the tournament.

However, recent booking trends suggest demand may not be uniform across all markets. Industry data has shown declines in travel reservations in Mexico City and Guadalajara compared with 2025 levels, indicating that World Cup-related demand may not fully offset broader market pressures. The engine inspections are occurring at a time when airlines are also confronting rising fuel costs linked to geopolitical tensions in the Middle East. 

In April, Volaris withdrew its full-year 2026 financial guidance, citing limited visibility on fuel prices, currency movements, and demand trends. “Volaris maintains its confidence in the strength of its business, demand across its network, and its ability to execute strategic initiatives, and will update its outlook as conditions stabilize and visibility improves,” the airline said in its first-quarter earnings report. 

Before withdrawing guidance, Volaris projected approximately 7% capacity growth during 2026, supported by a 33% EBITDAR margin and average fuel prices between US$2.10 and US$2.20 per gallon. Market conditions have shifted significantly since then, as energy prices increased following disruptions to global supply routes.

The financial impact has already become visible. Volaris reported a net loss of US$71 million in 1Q26, compared with US$51 million during the same period in 2025. Average fuel costs rose 16.2% to US$3.06 per gallon, while total fuel expenses reached US$252 million. Operating costs increased 15% to US$791 million, exceeding operating revenue. 

Against this backdrop, Volaris and Viva continue advancing plans to create a holding company known as Grupo Más Vuelos. Beltranena said the transaction remains under review by Mexico’s Federal Economic Competition Commission (COFECE) and has completed the first three stages of interviews.

“We are in the normal process, and it will take between nine and 12 months to receive a response,” he said. The executive argued that recent industry disruptions strengthen the case for consolidation rather than weaken it.

“When we talk about the merger, we talk about the importance of having a solid industry that can withstand shocks like the one we have just experienced. Far from weakening the case, it reinforces it. Far from moving us away from our original position, it confirms why an alliance of this type is fundamental in defending the airline industry for the future,” Beltranena said.

He cited several industry disruptions, including the 2018 financial crisis, the COVID-19 pandemic, the Pratt & Whitney engine issue, and the current fuel cost environment. “The industry needs to be economically strong and have consolidation that allows Mexico to maintain an airline sector capable of defending itself against these shocks,” he said.

The proposed transaction faces significant regulatory challenges. According to industry analysts, Volaris and Viva together control 192 routes and approximately 71.2% of passenger traffic among Mexico’s leading airlines.