MEXICO CITY 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.
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)
