Rising Fuel Prices Concern Industry: The Week in Aerospace
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Rising Fuel Prices Concern Industry: The Week in Aerospace

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Reneé Lerma By Reneé Lerma | Journalist & Industry Analyst - Thu, 09/28/2023 - 09:58

In 2024, Mexico City International Airport (AICM) expects to receive a MX$1.5 billion (US$88.8 million) budget for infrastructure and connectivity, while Felipe Ángeles International Airport (AIFA) aims for 3 million passengers by 2023. Meanwhile, rising fuel and labor costs concern airlines, which are turning to AI to enhance their operations.

Are you ready for takeoff? This is the Week in Aerospace!

AICM Set to Secure MX$1.51 Billion Budget for 2024

In 2024, the Mexico City International Airport (AICM) is slated to receive a budget of MX$1.51 billion (US$88.8 million), with the primary objective of maintaining and enhancing its infrastructure and air connectivity to remain competitive both regionally and internationally.

AIFA's Cargo Expansion to Attract 27 Airlines

AIFA expects to handle 110,000 tons of cargo by year-end, supported by 16 warehouses. The airport will celebrate one month since the mandatory migration decree that moved all cargo operations from AICM to its facilities. According to AIFA’s Director General, this move has represented significant growth, with the expected participation of 27 airlines and an increased cargo volume by the end of the year.

Rising Oil Prices Cause Concerns for Airline Profit Margins

The steep rise in fuel prices and labor-related expenses is a dual blow for an industry striving to rebound from the setbacks of the pandemic. The surge in global oil prices is particularly impacting the US aviation sector. Jet fuel prices at major US airports have experienced a 38% increase in just two months, soaring to an average of US$3.42 per gallon

Aerospace, Defense Embrace AI Revolution

AI is revolutionizing the aerospace industry, from enhancing fuel efficiency to optimizing part design. The aerospace and defense (A&D) industry is increasingly turning to AI to address challenges and secure a promising future. The adoption of AI has become a cornerstone for managing this sector, especially considering recent disruptions caused by the pandemic, productivity bottlenecks and a shortage of skilled talent.

Key Sustainable Initiatives in Latin America's Aviation

As the aviation industry grapples with the imperative to reduce its carbon footprint, several significant developments unfold. The Latin American and Caribbean Air Transport Association (ALTA) is actively promoting decarbonization in Latin America's aviation sector, while the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) system is gaining traction.

Blockchain Innovation Takes Flight in the Aviation Industry

Blockchain can boost loyalty, data trust and supply chain collaboration in the aerospace industry. The technology is being used to revolutionize loyalty programs, enhance passenger information reliability and support supply chains. 

AIFA Aims to Serve 3 Million Passengers in 2023

AIFA estimates that about 3 million passengers will pass through the airport by the end of 2023. Mexicana de Aviación, a state-owned airline, is poised to establish AIFA as its primary hub, further expanding the airport’s connectivity.

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