Pratt & Whitney has recalled a significant number of its PW1000G geared turbofan (GTF) engines due to a manufacturing defect affecting certain high-pressure turbine and compressor components. This has led to the grounding of numerous aircraft, including models from the Airbus A320neo family, A220, and Embraer E-Jet E2, that are powered by these engines.

Simple Flying examines which US airlines are most affected by the issues of Pratt & Whitney PW1000G engines today. Data from ch-aviation shows that out of 664 aircraft in the United States powered by the PW1000 series engines, 64 are currently listed as stored or undergoing maintenance.

Spirit Airlines Faces The Largest Impact

It is important to note that ch-aviation does not specify the reasons why these aircraft are in storage. However, it is likely that many have been taken out of service for engine maintenance, particularly in connection with the GTF recall, though some may be grounded for other reasons.

According to the data, 64 aircraft powered by PW1000-series engines are currently listed as stored or undergoing maintenance. The impact spans seven airlines and one private operator, with Spirit Airlines being the most affected. Of Spirit’s Airbus A320neo fleet, 39 aircraft are grounded, while the remaining 52 are still in active service. Spirit Airlines has voiced its frustration over the groundings of its GTF-powered fleet.

Recently, however, the airline extended its agreement with Pratt & Whitney to help offset the financial impact of grounding its Airbus A320neo aircraft, which use PW1100G engines. Under the updated deal, Spirit will receive an additional $150 million to $195 million in liquidity in 2025, similar to the support it received in 2024. The budget airline previously stated that issues related to the GTF engines, including accelerated removals and inspections, are expected to continue through 2026.

Seven Airlines, One Private Operator Affected

In addition to Spirit Airlines, six other carriers and one private operator have grounded several GTF-powered aircraft, according to ch-aviation. JetBlue Airways and Delta Air Lines appear to be similarly affected.

The data shows that JetBlue currently has five Airbus A321neos and four Airbus A220-300s in storage. Delta Air Lines has also grounded a comparable number, with four Airbus A321neos and four Airbus A220-300s listed as stored. Other affected airlines with GTF-powered aircraft marked as stored, undergoing maintenance, or under repair include Frontier Airlines, United Airlines, Hawaiian Airlines, and Breeze Airways.

FlightGlobal reports that while the total number of commercial aircraft grounded due to Pratt & Whitney’s recall of PW1000-series engines has seen a slight decrease in recent months, the proportion of grounded jets has stayed nearly constant, hovering around 30% of the fleet.

Problems Affecting PW1000G Engines

The Pratt & Whitney PW1000G engines are facing challenges due to a manufacturing defect involving contaminated powdered metal in high-pressure turbine and compressor components. This issue has led to widespread inspections and repairs, grounding hundreds of aircraft and causing significant operational disruptions expected to continue through 2026.

Engines operating in harsh environments like hot, humid, or sandy regions have experienced accelerated wear, leading to more frequent maintenance and unscheduled removals. Pratt & Whitney’s maintenance network is under strain, working to expand capacity to handle the backlog of repairs and reduce aircraft downtime.

These problems have caused financial strain on airlines, with some reporting significant profit drops due to grounded fleets. Additionally, recent strikes by Pratt & Whitney workers have further delayed production and repairs, extending the timeline for full recovery, which is anticipated in the coming years.

The U.S.-Mexico aviation landscape has entered a period of profound transformation. Regulatory shifts, geopolitical tensions, and the unraveling of long-standing airline partnerships—most notably the Delta-Aeroméxico joint venture—have created a volatile environment for investors. As the U.S. Department of Transportation (DOT) enforces stricter oversight of cross-border operations, airlines and investors must navigate a complex web of risks and opportunities.

Regulatory Shifts and the Fragmentation of Joint Ventures

The DOT’s 2023 decision to revoke antitrust immunity for the Delta-Aeroméxico partnership marked a turning point. Citing Mexico’s airport capacity restrictions—particularly the forced relocation of cargo operations from Mexico City International Airport (MEX) to the underdeveloped Felipe Ángeles International Airport (NLU)—the U.S. government argued that these actions violated the 2015 U.S.-Mexico Air Transport Agreement. This move, aligned with the Trump administration’s “America First” agenda, has forced the joint venture into a wind-down by October 2024, fragmenting a once-integrated transborder network.

For Delta Air Lines (DAL), the loss of Aeroméxico’s 15% stake in Volaris—a key regional competitor—has complicated its dominance in the Mexican market. Meanwhile, Aeroméxico (AEROMEX.MX) faces a dual challenge: diminished U.S. connectivity and rising competition from low-cost carriers like Volaris and VivaAerobus. The airline’s 30-day stock win rate of 42.86% in 2025 reflects market uncertainty, though historical data suggests potential for recovery.

Financial Implications and Currency Volatility

The Mexican peso’s depreciation against the U.S. dollar has exacerbated financial risks for both airlines. Delta’s 2025 quarterly report shows resilience, with $16.6 billion in operating revenue and a 12.6% operating margin, but its long-term exposure to currency fluctuations remains a concern. Aeroméxico, which relies on U.S.-sourced aircraft parts and crew expenses, has seen costs rise by 15–20% since 2023.

Volaris, meanwhile, has capitalized on the shifting dynamics. The low-cost carrier transported 10.77 million passengers in the first half of 2025—a 8.2% year-over-year increase—by expanding its route network and leveraging Aeroméxico’s weakened U.S. connectivity. For investors, Volaris’ 3.1% international passenger growth underscores its potential as a long-term play.

Geopolitical Risks and Strategic Realignment

The U.S.-Mexico trade tensions of 2025 have escalated beyond aviation. The reinstatement of a 17% tariff on Mexican fresh tomatoes in July 2025 and the looming threat of a 30% tariff on all Mexican imports by August 1 have created a toxic mix of uncertainty. For airlines, the ripple effects include supply chain disruptions and regulatory instability. The U.S. tariffs on steel and aluminum, while not directly targeting aircraft, indirectly raise production costs for manufacturers like Boeing and Embraer, affecting carriers reliant on U.S. suppliers.

Aeroméxico has responded by sourcing aircraft parts from non-U.S. suppliers and exploring Mexico’s aerospace sector for maintenance, repair, and overhaul (MRO) services. This strategic shift could reduce reliance on U.S. facilities and mitigate tariff-related penalties. Delta, in contrast, has focused on diversifying its route network and hedging 60% of its fuel needs to offset rising costs.

The Mexican government’s potential retaliatory measures under the USMCA framework—ranging from tariffs on U.S. aviation services to stricter airport capacity controls—add another layer of complexity. Investors must monitor these developments closely, as they could trigger a sell-off in airlines with heavy cross-border exposure.

Market Projections and Investment Strategies

The Mexican aviation market, valued at $7.96 billion in 2024, is projected to grow at a CAGR of 4.60% through 2034, reaching $12.48 billion by 2034. This growth is driven by the expansion of low-cost carriers, the recovery of international travel, and the FAA’s reinstatement of Mexico’s Category 1 air safety status in 2025.

For investors, the path forward lies in adaptability. Airlines with diversified networks, strong balance sheets, and proactive hedging strategies are better positioned to navigate volatility. Delta’s 2025 guidance of $5.25–$6.25 in EPS, coupled with a 25% dividend increase, signals confidence in its long-term trajectory. Aeroméxico’s efforts to expand into Central America and the Caribbean could unlock new revenue streams, but its stock remains a higher-risk bet.

Conclusion: Resilience Over Dominance

The U.S.-Mexico aviation crisis is a microcosm of the broader clash between geopolitical interests and globalized commerce. For airlines, the dissolution of joint ventures and regulatory scrutiny demand a recalibration of strategies. For investors, the key takeaway is clear: resilience—rather than dominance—will define the winners in this high-stakes environment.

As the aviation sector adapts to a more fragmented and protectionist landscape, those who prioritize diversification, liquidity, and strategic realignment will emerge stronger. The August 1 tariff deadline and the DOT’s final ruling on antitrust immunity by October 2025 are critical junctures to monitor. In an era of geopolitical brinkmanship, adaptability is not just an advantage—it is a necessity.

The director-general of the International Air Transport Association (IATA), Willie Walsh, was in Singapore recently where he talked about strategic and significant issues facing the aviation industry. These include the uncertainties surrounding the impending U.S tariffs and the viability of low cost carrier models upon the exit of Qantas’ owned Jetstar. He also heavily criticised the EU’s sustainable aviation fuel (SAF).

U.S. tariffs may cause airlines to refuse delivery of aircraft

Airlines may be reluctant to take delivery of aircraft due to the ongoing uncertainty around U.S. tariffs and their impact on the cost of the planes, Walsh said, as reported by Reuters.

“It’s not just going to be a major Boeing and Airbus issue. It’ll impact all aspects of the aerospace industry and have an impact on most, if not all, airlines as well,” he said.

The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the COVID-19 pandemic did, its CEO Francisco Gomes Neto, warned last week, flagging risks to U.S. partners.

Neto said the tariffs would amount to a trade embargo on the regional jets it supplies to U.S. airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer’s U.S. suppliers.

EU’s green fuel mandate costly, not helping environment

IATA also stepped up criticism of the European Union’s sustainable aviation fuel (SAF) mandate as a costly initiative that is not helping the environment as regional supplies there remain low.

“The idea that you’re buying sustainable fuel and then transporting it to use in Europe isn’t the right way to do it, because you’re clearly increasing the carbon footprint of that fuel as a result of the transportation costs,” Walsh said.

IATA estimated in June that production of SAF, which is considered a low carbon replacement for traditional jet fuel is expected to reach two million tonnes, or 0.7 per cent of airlines’ fuel consumption, in 2025.

“Mandating the use of a product that isn’t available doesn’t lead to any environmental benefit,” Walsh said, adding that fuel companies that have an obligation to produce SAF are also increasing the cost of traditional jet fuel.

By IATA’s assessment, he said “the cost that they’re charging is way in excess of the actual cost of the limited supplies of sustainable fuel”.

“The EU in effect has facilitated monopoly suppliers to increase prices with no environmental benefit,” said Walsh, adding that the region needs to re-evaluate its SAF targets.

Under the ReFuelEU Aviation requirement, airlines need to have a six per cent SAF blend in their jet fuel usage by 2030. The EU is offering some subsidies for SAF purchases by airlines, Reuters reported in June.

On the supply front, at least five SAF projects in Asia, outside of China, have started up or are earmarked to start production in 2025, targeting exports regionally and to Europe. Singapore is among key exporters of the green fuel to the EU.

Walsh also questioned the use of palm oil as a means to produce sustainable fuel.

“I think that you could argue there is sustainable palm oil and there is palm oil that wouldn’t be considered sustainable, and I think in some parts of the world there it’s too black and white,” Walsh said.

We need to have a much more “nuanced approach” to the usage of palm oil as a feedstock and “much more detailed assessment of the sustainability of the feedstock”, he added.

Low-cost carrier model remains viable, but may not work at every airport

The budget airline model is not dead, but it does not always work at every airport, said Walsh. He added that it probably does not make sense for budget carriers to operate at certain airports because of their nature or cost structure.

“Just because you see some low-cost airlines exiting the market, I don’t think you can read across that the business model is not relevant for the future,” he said. “I firmly believe it is and will continue to be. But it doesn’t always work at every airport. Airlines that are labelled budget or low-cost, that doesn’t necessarily guarantee their financial success.”

The viability of budget airlines at high-cost airports such as Changi Airport was thrust into the spotlight after Jetstar Asia said it was exiting Singapore at the end of July, flagging increased competition and operating costs as some push factors.

“Heathrow Airport is no different. For example, there’s no real low-cost operation at Heathrow, principally because of the cost of the airport and the access to slots.”

The airline industry is a highly competitive one, Walsh added. He pointed out that, although 408 new airlines were started in the past decade to December 2024, there were 420 failures as well, making a net loss of 12. Profitability on a global level is wafer-thin – the net profit margin this year is forecast at 3.7 per cent.

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