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Volaris has a game plan to battle oversupply in Mexico's domestic market

Premium Analysis

It is well documented that Mexico was one of the first markets to recover fully from the havoc wrought by the COVID-19 crisis. Two of its largest airlines - Volaris and Viva Aerobus - have restored their capacity to pre-pandemic levels by early 2021.

But a safety downgrade of Mexico issued by the US more than two years ago has hindered the ability of Mexican airlines to expand into the US, which is an important transborder market for those operators. The result is the Mexican domestic market is oversupplied, and the excess capacity could linger until Mexico's safety rating is restored.

Mexico's largest domestic airline, Volaris, believes that it has a unique tool in its arsenal to combat the challenges in the market - aircraft operator's certificates for its subsidiaries in Costa Rica and El Salvador.

But similarly to all Mexican airlines, the airline is looking forward to an ability to resume growth into the US.

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