Mexican Airports Show 1.5% Growth Amid Weak Domestic Demand

Mexican airport operators Grupo Aeroportuario del Sureste (ASUR), Grupo Aeroportuario del Pacífico (GAP), and Grupo Aeroportuario del Centro Norte (OMA) collectively reported a 1.5% annual growth in passenger traffic for November 2024, despite challenges such as declining domestic demand. The three groups transported a total of 13.4 million passengers during the month, according to filings with the Mexican Stock Exchange (BMV).

ASUR, which operates airports including Cancun, recorded a 1.5% annual increase in total passenger traffic. GAP reported a 1.8% rise, while OMA posted a robust 9.9% growth in passenger numbers. However, overall demand remains fragile. Guillermo Quechol, analyst, Intercam Casa de Bolsa, told El Heraldo that while the growth figures indicate recovery, they are less pronounced compared to earlier months.

A major challenge for these airport groups is the slowdown in domestic air travel within Mexico. ASUR reported a 7.6% annual decline in domestic traffic, with Cancun experiencing a 2.8% drop in passenger numbers. GAP saw only a 0.6% increase in domestic traffic, while OMA achieved a 5.8% rise during the same period.

Quechol attributed the weakness in domestic traffic to reduced airline capacity, primarily due to engine reviews undertaken by two major carriers on their GTF engines. Combined with a broader economic slowdown, this has significantly impacted domestic demand. However, international traffic has remained relatively stable, following typical seasonal trends and contributing positively to overall passenger numbers.

Concerns also persist about a decline in traffic to beach destinations, particularly from U.S. tourists. This trend may be driven by government travel advisories and the rising costs of tourism at popular Mexican destinations.

“Airport groups will likely continue to face declines in domestic traffic while international demand recovers, with the exception of ASUR,” Quechol explained.

Looking ahead, analysts expect domestic air travel weakness to persist through the end of 2024. In contrast, international traffic is projected to sustain its seasonal recovery, providing a stabilizing effect on overall performance metrics for Mexican airport operators.