Mexico City air services: tough conditions force US LCCs out

Premium Analysis

There has been flux in the Mexico City-US market during the past year as the low cost operators Southwest, Alaska and JetBlue have either entirely pulled out of Juarez International airport, or in the case of JetBlue, reallocated flights to points of strength in its network. 

All of those airlines benefitted from slot divestitures required by regulators for SkyTeam partners Aeromexico and Delta to launch their transborder joint venture in 2017. Although Mexico City tilts more towards business passengers, overcapacity has been an overhang in the US-Mexico market for some time, and pricing on those routes has been pressured. 

Given those conditions, it is no surprise that airlines are opting to pull capacity from Mexico City; but the result is a dwindling presence of US low cost airlines in Mexico’s capital. 

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