Mexico air transport market soars: 2023 records 10.6% passenger surge unveiling growth potential amid challenges

Thursday, April 4, 2024

The statistics regarding Mexico’s air transport market are striking: In 2023, 118.1 million passengers were transported, marking a 10.6% increase from 2022, a record-breaking figure in its history. Of this traffic, 54% consisted of domestic passengers, solidifying Mexico as the second-largest domestic market in Latin America, trailing only Brazil.

This positive trend is emphasized by ALTA Aviation Insight México, which notes that over the past 15 years, both domestic and international markets in Mexico have experienced steady growth, averaging 5.7% and 5.1% respectively, surpassing global averages.

José Ricardo Botelho, CEO of ALTA, highlights Mexico’s significant air travel potential, noting that while the country’s per capita trip indicator stands at 0.87 trips per capita, considerably higher than the regional average of 0.6 trips per capita, it still lags far behind the United States, which boasts 2.53 trips per capita. Botelho sees ample room for growth, citing the establishment of 72 new post-pandemic routes as evidence of untapped opportunities.

Botelho’s presentation of the report outlines key aviation demand and capacity indicators, utilizing data from the Amadeus Travel Intelligence Platform. Despite the industry’s overall growth in 2023, with a 10.6% increase in passenger traffic, 7.8% in seat capacity, and 4.3% in operated flights, there remains a considerable gap, as Mexican residents, on average, fly less than once a year.

However, impediments to sustained industry growth persist, including high taxes, inadequate airport infrastructure, and legal uncertainties. Mexico ranks among the top countries in the region in terms of total fees and taxes paid by passengers, with an average of $104 USD in international fees and taxes, plus 4% in base fare taxes. Additionally, the AICM Airport Use Fee increased by 3.2% in 2024, contributing to one of the highest fee burdens worldwide. Infrastructure shortcomings result in airport congestion, hindering growth potential, while legal uncertainties deter investment and long-term planning in the airline market.

“In 2023, 42.2 million tourists visited Mexico, generating a contribution of 30,809 million dollars to the Mexican economy. Of the total number of tourists, 20.32 million entered by air and contributed 90% of the total foreign currency that entered the country through tourism. These data allow us to clearly see the importance of air transportation for the generation of economic benefits in Mexico,” highlights the CEO of ALTA.

According to Botelho, aviation serves as a potent economic engine, fostering social and economic advantages that enhance the well-being of entire nations and regions. However, it necessitates a framework of legal certainty and predictability to thrive. Investment, airport infrastructure development, and operational cost optimization are crucial factors for unleashing the full potential of Mexican aviation.

Key figures concerning Mexican aviation:

• In 2023, the international market to and from Mexico boasted a capacity of 68.7 million seats and transported 54.9 million passengers.
• Cancún – Dallas Fort Worth emerged as the busiest city pair in Mexico’s international market in 2023, facilitating 1.1 million passengers with 1.4 million active seats and an 81% load factor.
• Cancun International Airport stood out as the largest in Mexico’s international market, offering 24.9 million seats and serving 19.8 million passengers in 2023.

Regarding the domestic market:

• Volaris led in passenger volume for 2023, transporting 30.2 million passengers and securing a 26% market share.
• Aeroméxico followed closely, carrying 24.9 million passengers, capturing a 21% market share, while VivaAerobus held 19% of the market with 22.8 million passengers.
• Mexico City (MEX) – Cancun emerged as the most sought-after route domestically in terms of traffic per segment, facilitating 4.5 million passengers with 5 million seats.
• Measured by O&D traffic, Mexico City (MEX) – Cancún emerged as the paramount route in the domestic market, facilitating 3.7 million passengers in 2023.

Furthermore:

• Monterrey Airport experienced remarkable growth in the domestic sector during 2023, witnessing an increase of over 2 million seats and 1.9 million passengers compared to 2022.

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