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COVID-19: will the virus pandemic hasten consolidation in Mexico?

Premium Analysis

At some point, nearly every region of the world will face the major crisis created by the COVID-19 coronavirus pandemic, which is now continuing its march into Latin America. Although cases in Latin America have not yet reached the levels in other countries, the region’s aviation markets are beginning to see a precipitous slide in demand.

Three of Mexico’s larger airlines are either cutting capacity or pulling down part of their operations, and it is likely that the country’s other operators will begin to adjust their schedules, since restrictions on travel between Mexico and US are now fully in place. 

Most of Mexico’s major airlines appear to be on a reasonably solid footing for emerging from the evaporation of demand created by the devastation of the COVID-19 outbreak, but some operators are in stronger positions than others. And the occasional calls for consolidation in the country’s aviation market could be accelerated by the COVID-19 pandemic. 

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