Mexico-US aviation: currency, fuel, other pressures soften the market

Airlines operating to, from and within Latin America are experiencing headwinds driven by high fuel prices and currency pressure -particularly in Argentina and Brazil.

But airlines have also faced challenges in the Mexico-US transborder market due to overcapacity, currency depreciation and travel warnings over certain leisure markets. Aeromexico, the largest Mexican airline operating between Mexico and the US, is dropping five US routes in 2019.

Some US airlines are seeing slight signs of improvement in the Mexican market as 2018 draws to a close. But Southwest Airlines does not foresee a dramatic improvement in operating conditions.