Volaris and Aeromexico: Mexican airlines embark on key strategic growth; conditions are favourable

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The outlook for Mexican airlines continues to be more robust than for many other airlines in Latin America. Mexico’s two publicly traded airlines Volaris and Aeromexico are operating in a domestic market that continues to chart solid growth, while demand on international routes remains steady.

Volaris is in the final phases of obtaining certification for a new airline based in Costa Rica – to spread the low cost model further in Central America. Aeromexico is waiting to obtain approval from US regulators to forge a joint venture with its Skyteam partner Delta. Once that occurs, Delta will move forward to up its stake in Aeromexico to 49%.

Both airlines have stuck to their capacity guidance for 2016 – Volaris in the double digits and Aeromexico in the high single digits. Each company feels comfortable with its growth plans as the overall Mexican market remains stable.

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