Aeromexico and Volaris find some positive signs despite US market and industry uncertainty

Premium Analysis

Mexico’s two largest airlines, Aeromexico and Volaris, are bracing for uncertainty, created by the new US President Donald Trump through his immigration actions and protectionist slant toward trade policies. Each airline has specific tools to combat the effects of political change – Volaris is diversifying its network through a new operation based in Costa Rica, and Aeromexico is betting its new joint venture with Delta Air Lines will blunt some of the negative effects of US policies.

But the reality is that the US remains the largest international market for each airline by wide margins.  

A post election currency dive and revised GDP growth targets for Mexico are challenges that all Mexican airlines face in 2017. For now, Aeromexico and Volaris appear to be experiencing a softness in demand on northern leisure routes from Mexico, but that could quickly spread to other market segments important to each company.

Much untapped potential demand remains in Mexican air travel. But a new political landscape in the US may force some Mexican airlines to reshape their strategies if Mr Trump’s rhetoric transforms into actual policies.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,419 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.