Mexican Commercial Aviation: Steady Growth But Challenges Ahead

The Mexican commercial aviation market has experienced steady growth rates above the world average for 15 years, according to the Latin American and Caribbean Air Transport Association (ALTA). In 2023, the country recorded 118.1 million passengers transported, a 10.6 percent increase from the previous year. However, despite these positive figures, there are challenges hindering sustained growth in the industry, such as high fees and taxes, lack of airport infrastructure investment, and legal uncertainties.

High taxes imposed on the aviation industry in Mexico contribute to making it one of the most expensive countries in terms of total fees and taxes for passengers. The AICM airport use fee has also increased significantly, becoming one of the highest globally. Inadequacies in infrastructure contribute to flight congestion in terminals, limiting growth potential for the industry. Additionally, legal uncertainties surrounding the airline market discourage investment and long-term planning efforts.

The economic benefits generated by air transportation are significant, with 42.2 million tourists visiting Mexico in 2023 and contributing significantly to the country’s economy. Addressing issues such as high fees, infrastructure limitations, and regulatory uncertainties is crucial for stakeholders to support sustainable growth and maximize economic benefits from air transportation in Mexico.

Despite these challenges, Mexico remains a significant player in Latin America’s domestic market after Brazil. The ALTA presented its Aviation Insight Mexico analysis showcasing air transport statistics in the country. According to Botelho, executive director of ALTA, addressing these challenges is essential to ensure sustained growth in Mexican aviation and maintain its competitive position regionally.

In conclusion, while Mexican aviation has experienced steady growth over the past decade and a half, there are still several challenges that need to be addressed to support sustainable growth and maximize economic benefits from this vital industry. With proper planning and investment strategies aimed at addressing these issues head-on