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Interjet moves forward in strengthening its transborder position. Politics spurs market uncertainty

25-Mar-2017

Mexico’s third largest airline, Interjet, recorded a surge in international passengers during 2016, reflecting the company’s desire to capitalise on a loosened bilateral agreement between the US and Mexico that eliminated restrictions on certain routes between the two countries. Interjet added several new routes to the US in 2016, upping competition with its Mexican rivals and the US airlines.

Based on Interjet’s aircraft delivery schedule and forward looking data, the airline’s capacity is set to grow at a healthy pace in 2017 as it absorbs new route launches from 2016 and expands its fleet. The airline logged 18.3% capacity growth in 2016.

Interjet is undertaking a significant US expansion as changing political tides are creating uncertainty about future travel patterns between Mexico and the US. Interjet asserts that business travel demand on its largest international route – Mexico City to New York JFK – remains robust, and the airline is expanding frequencies on the route.

But Mexico-US relations remain fragile in the light of uneasiness about changing trade pacts, and the heightened rhetoric over construction of a border wall between the two countries that was a hallmark of (now) President’s Trump campaign.

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