COVID-19: Mexico’s airlines - government support and/or consolidation?

Premium Analysis

Mexican airlines are bracing for the peak of COVID-19, estimated to occur in the country in May-2020, by instituting dramatic capacity cuts and working with suppliers to obtain short term relief for cash outlay commitments.

Those airlines are also working to preserve precious liquidity, but unlike others in many regions of the world, Mexico's government has yet to craft an aid package for its airlines. As a result, the country's two largest airlines, Aeromexico and Volaris, are attempting to stress the importance of government aid, as revenue has been nearly wiped out and credit markets start to tighten.

It has not yet been determined that the government will ultimately offer some aid to Mexico's airlines, but Aeromexico and Volaris are joining a growing consensus that there will be fewer airlines operating in Mexico once the crisis is over.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,321 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.