Mexico Invests US$7 billion in 36 Airports, Updates Slot Rules

This week, Mexico is investing US$7 billion to expand 36 airports, including major upgrades at Mexico City International Airport (AICM). Meanwhile, AICM passenger traffic fell 2.9% year-over-year, and Canada–Mexico air travel surged 20% amid US-Canada tensions. Grupo OMA and VINCI opened a new terminal at Ciudad Juarez Airport with a US$48.5 million investment. 

In international news, global air passenger demand grew 4% in July 2025, with Frontier expanding routes as Spirit Airlines files for Chapter 11 again. China’s top airlines narrowed losses but remained unprofitable. 

More updates below:

Frontier Adds Routes as Spirit Faces Bankruptcy Threats

Frontier Airlines is launching 20 new routes this winter — many in major Spirit Airlines markets — as it seeks to expand while its rival suffers financial turmoil. The move follows Spirit’s warning that it “might not be able to survive another year without more cash,” creating openings in key markets. Frontier overlaps with Spirit on 35% of its capacity, more than any other US carrier, according to Deutsche Bank.

Mexico Invests US$7 Billion in Expansion of 36 Airports

President Claudia Sheinbaum’s administration has allocated MX$121.54 billion (US$7 billion) to expand and modernize 36 airports across the country, including major upgrades at AICM, according to the first State of the Nation addportress delivered on Sep. 1.

Mexico Sets New Rules for Slots, Oversight at Airports

Mexico’s government has enacted reforms to the Airport Law Regulation, introducing new procedures for the assignment and management of landing and takeoff slots at saturated airports. Published in the Diario Oficial de la Federación on Aug. 29, the changes establish criteria for prioritizing slot distribution and the framework for oversight, following allegations by US authorities of unfair practices at Mexico City International Airport (AICM).

Mexico Urged to Improve Aviation Controls Amid New Regulations

Mexico’s aviation sector is facing pressure to strengthen internal controls following a series of regulatory changes both domestically and from the United States. These shifts may require airlines to enhance compliance mechanisms to reduce exposure to criminal organizations and meet new legal obligations.

Global Air Passenger Demand Rises 4% in July, IATA Says

The International Air Transport Association (IATA) reported a 4.0% year-over-year increase in global air passenger demand for July 2025, measured in revenue passenger kilometers (RPK). This growth was supported by a 4.4% increase in capacity, measured in available seat kilometers (ASK). The global load factor for July was 85.5%, a decline of 0.4 percentage points from the same month last year.

ALPA Opposes Raising Pilot Age to 67, Cites Safety Risks

The Air Line Pilots Association (ALPA), the largest pilot union in the United States, has rejected a proposal by the International Air Transport Association (IATA) to raise the mandatory retirement age for commercial pilots from 65 to 67. The proposal, recently submitted to the International Civil Aviation Organization (ICAO), seeks to revise the global standard established in 2006.

Spirit Airlines Files Chapter 11 Again to Cut Debt

Spirit Airlines filed for bankruptcy protection under Chapter 11 for the second time in less than a year, citing ongoing financial difficulties despite a prior restructuring effort. The Florida-based carrier said the process will allow it to continue operations while addressing liquidity challenges, reducing debt, and evaluating potential asset sales.

Delta to Pay US$79 Million Over 2020 Los Angeles Fuel Spill

Delta Air Lines has agreed to a US$78.7 million settlement in a class-action lawsuit stemming from a 2020 incident in which a jet released thousands of gallons of fuel over Los Angeles residential areas, schools, and playgrounds. The settlement, filed this week in federal court, is pending judicial approval.

Trump Ends NASA Union Rights, Pushes Commercial Space Reforms

The White House has moved to limit collective bargaining rights for federal employees at NASA and other agencies, citing national security concerns. On Aug. 28, US President Donald Trump signed an executive order adding NASA and the National Environmental Satellite, Data, and Information Service (NESDIS) within NOAA to a list of agencies exempted from protections under the Civil Service Reform Act of 1978.

AICM Traffic Declines to 25.6 Million Amid 2.9% Drop

AICM reported a 2.9% year-over-year decline in passenger traffic during the first seven months of 2025, totaling 25.6 million travelers. The airport saw a total of 26.4 million passengers during the same period in 2024, according to official airport figures.

China’s Top Airlines Narrow Losses but Stay in the Red

China’s largest state-owned airlines, Air China and China Southern Airlines, reduced their first-half losses in 2025 but remained unprofitable due to continued pricing pressure and market imbalance. 

OMA, VINCI Airports Open New Terminal at Ciudad Juarez

Grupo Aeroportuario del Centro Norte (OMA), in partnership with VINCI Airports, officially inaugurated a new terminal building and fully remodeled concourse at Ciudad Juárez International Airport following an investment of MX$828.4 million (US$48.5 million). The announcement was made on Aug. 26, 2025, during a public event attended by local and state officials.

Canada–Mexico Air Travel Jumps 20% in 1H25 Amid US Tensions

Air travel between Canada and Mexico surged in 1H25, with passenger volume rising 20.3% compared to the same period in 2024, according to the Federal Civil Aviation Agency (AFAC). The growth comes as Canadian carriers expand operations and more travelers choose Mexico over traditional US destinations amid ongoing trade and political tensions between Canada and the United States.

Katya Echazarreta Urges Mexico to Join Private “New Space”

Katya Echazarreta, the first Mexican woman to travel to space aboard Blue Origin, is advocating for new space industry regulations in Mexico to tap into the emerging “New Space” economy. This private-sector-driven model contrasts with the traditional “Old Space” approach, historically dominated by government agencies. 

AICM Reviews Systems to Ensure Operations During Rain

The Mexico City International Airport (AICM) has implemented new measures to address operational risks posed by severe rainfall. On Aug. 25, airport personnel, along with specialists from the General Directorate of Works and Dredging of the Mexican Navy (SEMAR), conducted a technical assessment of the airport’s retention lagoon in Airport Zone 2.