Aviation Groups Warn Against Proposed 74% Cut to Mexico's AFAC

Leading aviation trade associations have voiced strong opposition to the Mexican federal government's proposed fiscal year 2027 budget allocation for the country's civil aviation regulator, warning that severe funding cuts jeopardize the agency's operational capacity at a critical moment for safety oversight.

The National Chamber of Air Transport (CANAERO) and the International Air Transport Association (IATA) issued a joint response calling on government authorities to reconsider the proposed reductions submitted by the Ministry of Infrastructure, Communications, and Transportation (SICT) to the Chamber of Deputies as part of the 2027 Economic Package.

Under the federal budget proposal, the spending category designated for "efficient and competitive airports"—which encompasses both the Federal Civil Aviation Agency (AFAC) and Navigation Services in the Mexican Airspace (SENEAM)—is set to receive MX$1,114.5 million (US$65.70 million). This figure reflects a real-term funding reduction of 75.7% compared to the budget authorized for the current fiscal year.

The contraction is even more pronounced for AFAC specifically. The national aviation regulator is slating a proposed budget of MX$175.4 million (US$10.34 million) for 2027. This allocation represents a real reduction of between 73% and 74% —stripping away more than three-quarters of the public funds provided to the agency during 2026.

Industry groups, commercial pilots, and academic experts argue that the reduced figure leaves the regulator severely underfunded. According to AFAC's own estimations, the agency requires at least MX$2 billion (US$117.88 million) annually to maintain proper operations, a funding threshold it has never received since its creation in 2019. Airline representatives, airport operators, and agency personnel have consistently stated that historical underfunding has compromised basic security, supervision, and oversight functions across Mexico's air transport system.

The timing of the proposed fiscal constraint comes during a sensitive period for national air safety evaluation. Last month, the US Federal Aviation Administration (FAA) conducted an audit of AFAC under the International Aviation Safety Assessment (IASA) program. The results, expected in October, will determine whether Mexican aviation maintains its Category 1 safety rating or faces a downgrade to Category 2.

A Category 2 rating imposes legal limits preventing domestic airlines from adding new routes or expanding flight frequencies to the United States. Mexico has previously experienced two separate downgrades to Category 2, both of which stifled growth across the domestic sector due to systemic deficiencies within the national aviation authority.

"During recent years, the sector has faced a combination of challenges that have significantly increased its costs and operational complexity, such as high fuel prices and repercussions stemming from disputed bilateral regulatory processes, among others. All of this demands a solid aeronautical authority with technical capacity, operational strength, and adequate financial resources for its correct operation," Canaero and IATA stated in a joint release.

The trade associations warned that reducing funding while the industry requires administrative stability creates substantial risk. "In an environment where the industry requires a solid and strengthened authority, this measure generates great concern regarding the institutional and financial capacity of the regulator, as well as the serious consequences that this decision could have on the sector," the organizations stated.

"Canaero and IATA make a respectful call to the Ministry of Finance and Public Credit and to the Chamber of Deputies to reconsider this measure with a comprehensive vision, ensuring the necessary resources so that AFAC can fully comply with its responsibilities for the benefit of the national aviation industry," the statement continued.

In response to industry concerns, AFAC released a statement Thursday evening assuring commercial stakeholders that additional funding will be made available outside the primary framework of the 2027 Economic Package.

"The Ministry of Finance and Public Credit (SHCP) will guarantee the necessary resources for AFAC to develop its regulatory, supervisory, and oversight functions, as well as actions aimed at strengthening operational safety in the country," the agency declared, stating the additional funds will "strengthen its institutional capabilities and address the priorities of the national aeronautical sector."

AFAC did not clarify whether its formal line-item budget would be amended during congressional debate, nor did it disclose the precise mechanism or amount of the additional capital pledged by the federal government.