Mexican carrier Volaris sees Pratt & Whitney inspection agreement in next month (updated)

Controladora Vuela Compania de Aviacion SAB de CV

25/10/2023 16:53

(Updates with executive quotes, forecast detail)
       MEXICO CITY, Oct 25 (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  RTX.N  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.
    Volaris does not expect to have clarity on the long-term
impact of the inspections until the first quarter of 2024,
Beltranena added.
    The engine inspections "have affected our ability to
relocate aircraft for U.S.-bound routes more than anticipated,"
Chief Financial Officer Jaime Pous said.
    Volaris 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.
    Despite the hit from the engine inspections, Volaris expects
to increase international capacity by 19% in the fourth quarter,
Executive Vice President Holger Blankenstein said.

 (Reporting by Kylie Madry
Editing by Bill Berkrot)
 ((Kylie.Madry@thomsonreuters.com;))