Mexico domestic traffic grows by 7% in 1H2013 as low-cost airlines eat into Aeromexico market share

Domestic passenger traffic in Mexico slowed to the single digits during 1H2013 after recording 10% growth in 2012. The country's largest carrier Aeromexico is attributing some of the decrease in demand to a softening Mexican economy, which could pressure the country's low-cost carriers whose business models are built on capturing members of the Mexican middle class that still travel largely by bus.

It is not yet clear how demand patterns within Mexico will shape up for the remainder of 2013, but all of the country's main carriers continued to record year-on-year growth for Jun-2013 with the exception of Aeromexico. Mexico's only remaining legacy carrier is seeing its domestic market share slide as it focuses more on international expansion.