Mexico’s phenomenal domestic growth starts to slow

Figures for the fourth quarter of 2007 show that Mexico’s domestic market continues to grow at almost 20% but this represents a slowdown after growth of over 25% for several months earlier in the year.

Chart: Mexican domestic traffic growth
Source: DGAC Mexico

For the first time all year between October and December traffic growth was below the rate achieved in the previous year.

Chart: Mexican domestic routes
Source: DGAC Mexico

Aeromexico and Mexicana achieved their lowest domestic market shares all year in December. Volaris has grown its market share from under 5% to over 10% during the course of 2007, while Interjet’s share rose from under 6% to 9% during the year. LCCs now have around 40% of the domestic market.

Chart: Mexico’s top 15 domestic routes 2007
Source: DGAC Mexico

Of the top 10 domestic routes in 2007 eight involved Mexico’s main airport at Mexico City. Four of the top 15 routes experienced traffic declines while the fastest growing routes in the top 15 were Toluca to Cancun (+52%), Guadalajara to Tijuana (+46%) and Mexico to Veracruz (+23%).

US carriers dominate international routes

On international routes Mexico’s two major airlines Mexicana and Aeromexico share around 27% of the market, with American the leading non-Mexican airline. US airlines have over 50% of the international market.

Chart: Mexican international routes
Source: DGAC Mexico

The leading European airlines to and from Mexico during 2007 were Iberia and Air France who carried 366,087 and 341,513 passengers respectively.


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