Aeromar

Mexico returns to double-digit domestic growth in 2012, boosting outlook for Aeromexico and LCCs

Mexico’s domestic market recorded double-digit growth in 2012 for the first time in five years and only the second time this century. The Mexican aviation industry has reached its healthiest point since deregulation led to the launch of five low-cost carriers seven years ago. The market now features a strong legacy airline group and three LCCs which are seeking to cash in on their relatively strong positions by holding initial public offerings.

Mexican carriers flew 28.1 million domestic and 5.9 million international passengers in 2012, according to newly released statistics from Mexico’s DGAC. Domestically the market grew by 10% while the much smaller international market grew by 23%. Foreign carriers serving Mexico recorded much more modest growth of 3%, but still dominate Mexico’s international market with 21.2 million passengers carried in 2012.

LCCs help drive Mexican international passenger growth of 42% in 1Q2012

Rapid growth among Mexico’s three low-cost carriers – Interjet, VivaAerobus and Volaris – helped drive international passengers transported by Mexican carriers up 42% year-over-year during 1Q2012 as those airlines further expanded into US transborder markets and introduced new flights from Mexico to Central America and the Caribbean.

Mexico’s airlines transported 1.3 million international passengers during the first three months of this year compared with 924,916 during the prior year period, according to data from Mexico's DGAC. Interjet had the most dramatic growth, increasing its share of Mexico's international market (among Mexican carriers) from zero to 5.8% year-over-year. Interjet launched its first international flights last year and now operates from Mexico City to Guatemala, Havana, Miami and San Antonio and from Toluca to San Antonio.

Interjet currently operates 12 weekly roundtrip flights with Airbus A320s from its main base at Mexico City to San Antonio and three weekly flights from Toluca, where the carrier has its headquarters, maintenance facility and a smaller base.