Challenges Plague Mexican Commercial Aviation, Yet it Remains a Key Driver of Economic Growth

Mexican commercial aviation outperforms global growth rates: HIGH

Despite the steady growth of Mexican commercial aviation over the past 15 years, there are still challenges that threaten to hinder its sustained success. One major obstacle is the high taxes imposed on the industry, with passengers paying an average of $104 in international fees and taxes, as well as an additional 4 percent in base fare taxes. This makes Mexico the third-highest country in the region for total fees and taxes paid by passengers, following Argentina and Jamaica.

Another challenge mentioned in the analysis is infrastructure limitations and legal uncertainties surrounding Mexico’s airline market. Insufficient infrastructure to meet demand for flights leads to congestion in terminals and restricts growth potential. The legal uncertainty also impacts investment and long-term planning in the industry.

Despite these challenges, however, air transportation remains a crucial part of Mexico’s economy, contributing 14.9 percent of GDP and 12.2 percent of jobs in the country. In 2023, a record 118.1 million passengers were transported, representing a 10.6 percent increase from the previous year. More than half of this traffic (54 percent) consisted of local passengers, positioning Mexico as the second largest domestic market in Latin America behind only Brazil.

ALTA presented its Aviation Insight Mexico analysis, which revealed that air transportation is a key driver of economic growth and development in Mexico. In 2023, 42.2 million tourists visited Mexico, contributing $30.8 billion to the economy. Air tourists accounted for 90 percent of the total foreign currency generated by tourism, underscoring the importance of air transportation for economic growth and development in Mexico.

In conclusion, despite challenges such as high taxes imposed on aviation industry

Leave a Reply