Mexican carrier Volaris sees Pratt & Whitney engine agreement soon
By Kylie Madry and Aida Pelaez-Fernandez
MEXICO CITY (Reuters) -Mexican airline Volaris expects to reach an agreement with engine maker Pratt & Whitney in the next month on an initial round of mandatory motor inspections, the company's chief executive said on Wednesday.
The inspections, required after RTX Corp-owned Pratt & Whitney discovered a rare powder metal defect, could continue into 2024 and 2025, Volaris Chief Executive Enrique Beltranena said in a call with analysts.
Of Volaris' 126-aircraft fleet, 73 «may be temporarily affected,» Beltranena said, representing a major hit to the company.
Pratt & Whitney is expected to shell out billions of dollars to fix the defect, with the vast majority going to airlines.
Volaris will not have clarity on the long-term impact of the inspections until at least the first quarter of 2024, Beltranena added.
However in September alone, Volaris' available seat miles, a measure representing passenger carrying capacity, shrank 8% to represent a revenue hit worth $18 million, he said.
The airline currently has 16 aircraft grounded, Beltranena added.
Volaris trimmed its full-year estimates to reflect the change, with fourth quarter capacity expected to remain «virtually flat» compared to the year-ago period.
The airline had been expecting to boost flights to the United States after Mexico regained a U.S.-given aviation safety rating, which allowed Mexican carriers to expand routes to its northern neighbor.
However, the engine inspections «have affected our ability to relocate aircraft for U.S.-bound routes more than anticipated,» Chief Financial Officer Jaime Pous said.
Despite the hit from the engine inspections, Volaris expects to increase international capacity by 19% in the fourth
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