Mexico Passenger Growth Lags Brazil, Colombia in 2025: ALTA

Mexico has expanded its airport infrastructure through new terminals and modernization projects, yet passenger traffic growth continues to lag behind other major Latin American aviation markets. While Brazil and Colombia posted passenger growth of 9% and 5%, respectively, Mexico recorded 2.4% growth in 2025, below the regional average of 3.8%, according to the Latin American and Caribbean Air Transport Association (ALTA). Industry representatives say the gap reflects the absence of a long-term aviation policy despite increased infrastructure investment.

Over the past several years, Mexico has opened Felipe Ángeles International Airport (AIFA), inaugurated Tulum International Airport and resumed operations at facilities such as Ciudad Ixtepec Airport. Authorities have also invested in airport modernization, including more than MX$8 billion (US$461 million) at Mexico City International Airport (AICM).

Despite these investments, passenger growth has remained modest. Data from Mexico’s Federal Civil Aviation Agency (AFAC) show passenger traffic has increased between 2% and 3% annually in recent years. By comparison, several Latin American countries implementing aviation-specific development strategies have expanded at a faster pace.

ALTA reported total regional passenger traffic reached 477.3 million travelers in 2025, an increase of 3.8% from the previous year. Mexico’s passenger traffic rose 2.4%, placing it below the regional average.

Brazil remained the largest aviation market in Latin America and the main contributor to regional passenger growth after recording a 9% increase. The country has implemented policies including the International Tourism Acceleration Program, using public-private partnerships to expand airline capacity and international routes.

Colombia also outperformed the regional average, reporting 5% passenger growth following government initiatives centered on open skies policies, connectivity expansion, transport accessibility, and airport infrastructure investment.

Mexico’s aviation sector has focused primarily on expanding infrastructure without implementing a broader policy framework for long-term industry development, according to the Mexican Pilots College (CPAM).

“In the last 40 years, Mexico had not inaugurated the amount of infrastructure that it has opened during the past seven years. That is a policy. Is it the policy the industry needs? I do not know,” said Ángel Domínguez Catzín, president, CPAM, speaking to Expansión.

“Our view from the Pilots College is that, in addition to infrastructure, we would like to see it accompanied by a development plan,” he added. Domínguez argued that aviation policy should extend beyond a single government administration.

“We need a public aviation policy. Unfortunately, we continue to see administrations come and go without consolidating one. What we want is for the Mexican government to define what it wants from its aviation sector and what it expects aviation to become,” he said. Industry specialists say infrastructure improvements alone will not address long-term capacity requirements.

Airline traffic also reflects slower growth in the domestic market. Mexico’s three largest airlines transported 34.8 million passengers during the first five months of 2026, an increase of 1.1% from 34.4 million in the same period a year earlier. Volaris remained the country’s largest airline by passenger volume after carrying 13.1 million travelers, up 4.7%.

Aeroméxico transported 9.9 million passengers, down 0.7%, while Viva carried 11.74 million passengers, a decrease of 1.1%.

The broader operating environment has become more challenging for airlines. IATA recently reduced its global airline profit forecast for 2026 to US$23 billion from an earlier estimate of US$45 billion. The association cited higher fuel costs following geopolitical tensions in the Middle East and operating expenses increasing faster than revenues.

Industry net profit margins are now projected at 2.0%, compared with the previous estimate of 4.2%. Latin America nevertheless continues to outperform most global aviation markets. IATA expects passenger demand in Latin America to increase 5% during 2026, supported by resilient regional economies and sustained travel demand.

The association also reported that Latin American airlines recorded 5% passenger traffic growth in April, making the region the fastest-growing aviation market globally. International traffic increased 8.9%, accounting for nearly all regional passenger growth.

IATA Director Willie Walsh said government policy remains one of the principal factors influencing aviation expansion. “The potential for aviation in Latin America and the Caribbean is enormous. You only need to look at the region’s geography, population and developing economies,” Walsh said.

“But all of those opportunities will be significantly reduced if taxes are high”, Walsh warned, adding that additional aviation taxes reduce demand and weaken international competitiveness.

“I think governments should better understand the impact of high taxes on the attractiveness of their country,” he said. Industry organizations estimate airport charges and government taxes can account for as much as 60% of the final price of an airline ticket in Mexico.