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