Mexico-US transborder airline market Part 1: Interjet and Volaris capitalise on new US opportunities

Mexican low cost airlines Volaris and Interjet are engaged in a significant transborder push in 2016. Combined, the airlines will launch a dozen routes to the US as an upcoming new bilateral lifts restrictions on the number of airlines operating routes between the US and Mexico. With many countries in Latin and Central America experiencing economic weakness, the US is a safer bet for expansion in the near term.

Volaris and Interjet target different passenger segments, and the airlines have little overlap on the new flights that they are launching to the US. Volaris cites numerous route opportunities in the US transborder market, and has grown rapidly in that space during the past several years. Interjet has grown more slowly but has quickly broadened its US reach in 2016, entering some markets that already have ample service.

Although US airlines still dominate the transborder market Mexican airlines are working to chip away at the sizeable gap between them, growing their international passenger numbers 10% year-on-year for the first five months of 2016.

(This is Part 1 of two reports examining the Mexico-US transborder market. Part 2 will focus on the proposed joint venture between Aeromexico and Delta).