Mexican Commercial Aviation Registers 15-Year Steady Growth ALTA

The Mexican commercial aviation sector continues its upward trajectory, as reported by the Latin American and Caribbean Air Transport Association (ALTA). Over the past 15 years, both domestic and international air transport markets in Mexico have demonstrated consistent growth, averaging 5.7% and 5.1%, respectively, surpassing global averages.

In 2023, a record-breaking 118.1 million passengers were transported, marking a 10.6% increase from the previous year. Domestic passengers accounted for 54% of this traffic, solidifying Mexico as the second-largest domestic market in Latin America, trailing only Brazil.

Leading the domestic market in passenger volume for 2023 was Volaris, transporting 30.2 million passengers, followed closely by VivaAerobus with 21.1 million passengers and Aeroméxico with 17.5 million passengers.

However, despite these positive indicators, challenges persist within the industry, hindering sustained growth. High taxes and fees remain a burden for airlines operating in Mexico, with an average of US$104 in international taxes and a 4% base fare tax, positioning Mexico as the third-highest in total tax burden among regional counterparts.

Moreover, the 3.2% increase in the Airport Usage Fee (TUA) at the Mexico City International Airport (AICM) in 2024 further exacerbates cost pressures, making it one of the highest in the world. The TUA, which can represent up to 60% of ticket costs, significantly impacts airline economics.

Infrastructure inadequacies also pose a challenge, leading to congestion and delays at airports. Insufficient infrastructure not only limits growth potential but also contributes to uncertainties surrounding long-term investment and planning in the Mexican aviation market.

José Ricardo Botelho, CEO, ALTA, underscored the vital role of air transport in Mexico's economy, citing, "In 2023, 42.2 million tourists visited Mexico, injecting US$30.809 billion into the Mexican economy. Of the total tourists, 20.32 million arrived by air and contributed 90% of the total foreign exchange earnings from tourism to the country."