Mexican Airlines, Airports Report 25% Profit Increase in 2024

Mexican airline and airport groups collectively reported a significant boost in profits for 2024, despite challenges such as fluctuating passenger traffic, operational costs, and macroeconomic pressures. According to an analysis by El Financiero, which examined the financial reports of publicly traded airline companies, the five major airlines and airport groups listed on the Mexican Stock Exchange earned a combined total of MX$34.4 billion (US$1.86 billion) by the end of 2024. This represented a 25% increase in net profits year-over-year.

Among the most profitable airlines was Viva, which reported a MX$4.3 billion in net profit, nearly doubling its earnings compared to the previous year.

 "Our strategy remains flexible, as the return of aircraft from P&W inspections allows us to gradually phase out short-term leases, easing cost pressures and restoring a normalized cost base," said Juan Zuazua, CEO, Viva.  

Volaris also posted a strong performance, with net profits totaling MX$2.3 billion. The airline's strategy focused on increasing flights to and from the US and boosting ancillary revenue, which helped mitigate the impact of grounding 30 of its aircraft during the year.

"We expect this to be a temporary market condition, and we will closely monitor demand patterns, as we did during the first Trump administration," said Holger Blankenstein, Executive Vice President, Volaris.

On the airport side, Grupo Aeroportuario del Sureste (ASUR) saw profits rise despite a decline in passenger traffic at its Cancun hub. The company reported net earnings of MX$14.03 billion for 2024.  However, the group reported a 4.7% decrease in passenger numbers overall, which was partially offset by a 22.1% increase in aeronautical service revenues.

"We managed to overcome the turbulence caused by a drop in traffic from and to Cancún," said Adolfo Rivas, CEO, ASUR.

Grupo Aeroportuario del Pacífico (GAP) was the second most profitable airport group, with net earnings amounting to MX$8.87 billion. Although the group saw a decrease in profits of 8.4% compared to 2023, the overall performance was positive. 

"We are seeing a recovery in domestic capacity, which began in November last year and continued through January of this year," said Raúl Revuelta, CEO, GAP.

Grupo Aeroportuario del Centro-Norte (OMA) reported net profits of MX$4.94 billion, marking a slight decrease of 1.6% compared to 2023. OMA faced challenges such as a reduced domestic flight capacity due to early inspections of certain aircraft engines.

"For this year, we expect a recovery in domestic capacity deployed by the main airlines in our network. We anticipate mid-single-digit growth year-over-year," said Ruffo Pérez, CEO, OMA.

All three major airport groups saw growth in their total revenues for 2024. OMA, led by Ricardo Dueñas Espriu, reported total revenue of MX$15.07 billion, a 4.3% increase compared to the previous year. This was driven by a 5.7% rise in both aeronautical and non-aeronautical revenues, despite a slight 1.2% decrease in passenger traffic.

GAP, reporting total revenues of MX$33.61 billion, experienced a modest 1.2% increase compared to 2023. While aeronautical revenue decreased by 0.8% due to lower passenger traffic, non-aeronautical services saw a 24.4% rise, reaching MX$7.67 billion.

ASUR also posted an increase in revenues, with total income reaching MX$33.49 billion, a 6.4% rise from 2023. Non-aeronautical revenues grew by 6.4%, while aeronautical revenues surged by 22.1%, driven by enhanced services and strategic investments.