- Passenger numbers:
- Domestic: 2.4 million, +13.2% year-on-year;
- International: 2.5 million, +16.5%;
Mexican domestic passenger numbers up in Dec-2011, international pax also up
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Interjet’s international passengers soar with new US transborder push against Mexican and US rivals
International passenger numbers for the Mexican low cost airline Interjet skyrocketed more than 50% in the first seven months of 2016, reflecting the launch of more than 10 new international routes during that period, and with US transborder routes representing the bulk of Interjet’s international expansion.
Interjet is no doubt positioning itself to seize on opportunities created by a new, finalised bilateral between the US and Mexico that lifts restrictions on the number of airlines operating on specific routes between the two countries. Interjet’s rival Volaris has also grown its US transborder passengers in 2016, but it has a different route profile from that of Interjet. Generally, Interjet is subject to higher levels of competition on some of its transborder routes than Volaris, given that Interjet and Volaris offer different products to their passengers.
During the past two to three years Interjet and Volaris have been essentially tied for the coveted position of Mexico’s second largest domestic airline. But for the seven months ending Jul-2017 Volaris logged 22% domestic passenger growth, while Interjet’s passenger numbers inched down slightly, resulting in Volaris assuming full command of the second place ranking.
Aeromexico and Volaris capitalise on positions of strength in Mexico’s stable airline market
Compared with many other regions in Central and Latin America, Mexico’s stable economy is benefiting the country’s two publicly traded airlines Aeromexico and Volaris. There are apparent opportunities for both companies to stimulate traffic, but their business models are completely different. Volaris characterises itself as an ultra-low cost airline while Aeromexico is Mexico’s only full service airline, leveraging its position at Mexico City Juarez international airport to build what it considers to be a major connecting hub and gateway in Latin America.
Ratification of a revised bilateral with the US by the Mexican Senate, and tentative Mexican government approval of a joint venture between Aeromexico and its fellow SkyTeam partner Delta Air Lines, are major steps in Aeromexico’s strategy to distinguish itself as Mexico’s only global, full service airline.
Volaris continues to strengthen its business foundations of VFR (visiting friends and relatives) traffic, and diversifying its network into more US transborder routes. Although Volaris is planning healthy capacity growth in 2016, the company believes that there is enough demand to absorb its projected expansion.