Aeromexico and Volaris cite positive signs in Mexico despite growing currency pressures

Conditions in Mexico's aviation market continue to improve as domestic passenger growth remains steady. The stabilising conditions are helping Mexico's two publicly traded airlines Aeromexico and Volaris regain some lost ground with unit revenues and yields.

One major challenge that remains for those airlines is the rate of depreciation of the MXP against the USD, which was 26% at the end of 3Q2015. Aeromexico and Volaris seem to be weathering the effects of the depreciation as their profits and revenues grew steadily in the quarter.

Both Aeromexico and Volaris feel confident that the improvements in the Mexican market will continue as their respective outlooks for 4Q2015 remain stable. Volaris has expanded its domestic supply growth targets for 2015 as some markets show strong demand from passengers switching from bus travel.