Jet fuel prices drag down country's air traffic

Mexico's air traffic has seen a decline, with major airports reporting reduced national passenger numbers, failing to meet the optimistic tourism projections associated with the World Cup. Airlines are grappling with the high cost of jet fuel, forcing them to adjust operations and focus on more profitable routes rather than those directly serving the three World Cup host cities: Mexico City, Monterrey, and Guadalajara.

The Mexico City International Airport (AICM) recorded 3.5 million passengers in June, a 2.2% decrease from the previous year. National passenger traffic fell by 4.5%, while international arrivals grew by a modest 1.5%. Similarly, Monterrey International Airport saw only a 0.3% increase in passenger volume, reaching 1.3 million. National passengers at Monterrey decreased by 1.6%, though international traffic surged by 10.3%.

Guadalajara International Airport experienced a 6% rise in total passenger traffic, serving 1.5 million people. National passengers increased by 3.4%, and international arrivals grew by 11.5%. Despite these figures, independent aviation analyst Fabricio Cojuc described the initial projections for increased air travel due to the World Cup as "too cheerful" and based more on wishful thinking than solid estimates.

Cojuc noted that the Mexican air market has shown modest year-on-year growth, hovering around 0% in the first half of the year. The World Cup's activity alone was insufficient to significantly alter this trend. He explained that airlines have reduced flights due to soaring jet fuel prices and a fragile economic environment, leading to decreased supply and further dampening demand. The Secretariat of Tourism had estimated an additional 5.5 million visitors from the World Cup, expecting them to travel from host cities to other destinations, but this did not materialize.

Overall, the supply of domestic flights decreased in June at AICM, Cancun, Monterrey, and Guadalajara, with only international routes showing increases, except in Cancun. Cojuc added that the price factor significantly impacted national traveler traffic, as airlines opted to generate revenue through higher ticket prices rather than volume, affecting price-sensitive passengers.