Mexico’s airlines start 2018 with solid demand prospects and a healthy level of uncertainty

Stability and uncertainty are the two divergent themes emerging in Mexico’s aviation market at the beginning of 2018. The country’s airlines continue to chart solid passenger growth in both the domestic and international markets, but Mexico’s operators are facing pricing pressure in the domestic market, and on some US transborder routes.

US President Donald Trump continues to push for the erection of a border wall, and in political posturing has pegged the fate of deferred action for childhood arrivals programme (DACA) to funding for the wall’s construction.

Pressure in the US transborder market during 2017 was driven by political uncertainty and increased capacity, due to a more liberal air service agreement between the US and Mexico. Near the end of 2017, Mexico’s largest airline, Grupo Aeromexico, cited some capacity rationalisation in the US transborder market, which could ease some of the challenges hovering over those routes.

This CAPA Premium Analysis article is 1,127 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com