Mexican aviation sector slides on engine issues

Grupo Aeroportuario del Pacifico SAB de CV

02/10/2023 19:41

** Shares in Mexico's aviation firms take a tumble, with
analysts expecting more pressure as uncertainty mounts over the
impact of engine inspections from Pratt & Whitney
    ** Shares in airline Volaris  VOLARA.MX  drop more than 7.5%
to 10.67 pesos a share, its lowest since May 2020, also hit by
high jet fuel prices
    ** Enginemaker Pratt & Whitney, controlled by RTX Corp
 RTX.N , has called for lengthy quality inspections for Airbus
 AIR.PA  A320neo jet engines due to a rare manufacturing flaw
    ** Volaris has extended aircraft leases set to expire from
2024 to 2026 to mitigate the impact of the inspections, which
require planes to be grounded
    ** Mexico's airport operators also hit turbulence, with OMA
 OMAB.MX  dropping 8% last week, GAP  GAPB.MX  falling 6% and
ASUR  ASURB.MX  sliding around 3%
    ** "It's a really uncertain situation, and uncertainty is
the market's worst enemy," says Gerardo Copca, analyst at
consulting firm MetAnalisis

 (Reporting by Noe Torres;
Editing by Alison Williams)
 ((Noe.Torres@thomsonreuters.com))