Interjet's challenges rise as Mexico market competition intensifies

Mexico's third largest airline Interjet has faced a confluence of events that are creating formidable challenges for the company. The airline is struggling to rid itself of Sukhoi Superjet narrowbodies that have been plagued by maintenance issues, at the same time as attempting to correct assumptions that it is headed for bankruptcy, and has reportedly also faced staffing issues.

As it works through all those issues, Interjet is making significant network changes that include bulking up its operations in Mexico City and creating a hub in Cancún. It remains to be seen whether the latest changes will be successful, and Interjet is undertaking its network revamp at a time when the airline's yields are decreasing and costs are expanding.

Interjet has always billed itself as Mexico's value airline and its traffic and passenger levels continue to grow, but it faces an uphill climb in its quest to return to profitability as its lower cost rivals continue to compete fiercely in Latin America's second largest aviation market.