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Promising signs for Volaris in Mexico’s domestic market

Premium Analysis

The Mexican ULCC Volaris is taking advantage of what appears to be a decent recovery in Mexico’s domestic market. By YE2020 the airline expects demand within the country to reach 65% to 75% of the levels a year ago in 2019, led by the visiting friends and relatives (VFR) segment. 

VFR and leisure passengers make up the majority of Volaris’ traffic, which positions the airline favourably as the market continues to recover. At the same time, competition seems less intense on domestic routes. 

Before the pandemic Volaris was Mexico’s largest domestic airline measured by passengers carried, and the company continues to be poised to remain the dominant operator within Mexico. Volaris could also take opportunities to expand its presence in Mexico City Juarez International Airport as competitors pull back from the airport. 

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