Domestic market maintains 20% growth: Volaris now leading LCC

Latest figures show that Mexico’s domestic market continues to maintain its recent 20% growth fuelled by the rapid growth of the country’s new low-cost airlines.

Chart: Mexican domestic traffic growth
Source: DGAC Mexico

In seven of the last nine months traffic has grown by between 20 and 25% with only January and February growing slower. Between July 2005 and November 2006 a total of six new carriers started operations. There have now been no further new entrants in the last seven months suggesting that Mexico’s market is now settling down.

Chart: Mexican domestic routes
Source: DGAC Mexico
Image: Volaris ribbon cutting
Volaris is now the leading LCC – with no new entrant LCCs for six months, maybe Mexico is settling down.

Mexico’s LCCs are taking an ever increasing share of the domestic market. In January it was 26% but by June this had risen to 35%. In June Volaris overtook Click Mexicana to become Mexico’s leading low-cost airline. Before the end of the year it is likely to overtake Aviacsa as Mexico’s third largest domestic airline.

On international routes Mexico’s two major airlines continue to maintain a steady market share of around 25%. American carriers make up the rest of the Top 10 airlines serving the Mexican international market.

Among US carriers Continental has been expanding most rapidly. Its market share has risen two percentage points in the first six months of 2007 from 7.4% to 9.4%. The leading European carriers serving Mexico are Iberia and Air France who each have under two percent of the total market.


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