What Happened to Mexican Aviation Industry?
The Mexican aviation industry has experienced significant shifts, marked by the restoration of its FAA Category 1 safety rating in 2023, the relaunch of state-owned Mexicana de Aviación, and substantial growth in both passenger and cargo traffic. Despite challenges like fluctuating fuel costs and temporary passenger declines in mid-2026, major airlines like Aeromexico, Volaris, and VivaAerobus continue strategic expansions, while the Felipe Ángeles International Airport (AIFA) has achieved profitability and become a key cargo hub, especially with the 2026 FIFA World Cup boosting international arrivals.
Quick Answer
The Mexican aviation industry is currently in a dynamic phase of growth and strategic realignment as of September 2026. Following the crucial restoration of its FAA Category 1 status in September 2023, Mexican airlines have expanded international routes, particularly to the U.S.. State-owned Mexicana de Aviación has relaunched, and the Felipe Ángeles International Airport (AIFA) has become profitable, serving as a major cargo and World Cup passenger hub. While the sector saw a temporary dip in international passenger numbers in June 2026 due to U.S. capacity cuts and high fuel costs, major carriers like Volaris and Aeromexico are actively expanding their networks, and the air cargo segment continues robust growth.
📊Key Facts
📅Complete Timeline14 events
FAA Downgrades Mexico to Category 2
The U.S. Federal Aviation Administration (FAA) downgraded Mexico's aviation safety rating to Category 2, citing non-compliance with International Civil Aviation Organization (ICAO) safety standards. This restricted Mexican airlines from launching new routes to the U.S..
Felipe Ángeles International Airport (AIFA) Inaugurated
The Felipe Ángeles International Airport (AIFA) began operations, intended to relieve congestion at Mexico City International Airport (AICM).
Mexico and FAA Agree on Corrective Action Plan
Mexico's Ministry of Infrastructure, Communications and Transportation (SICT) and the FAA agreed on a corrective action plan to regain Category 1 status, addressing legal changes, AFAC budget, and air safety.
FAA Restores Mexico's Category 1 Status
After nearly two years, the FAA reinstated Mexico's aviation safety rating to Category 1, allowing Mexican airlines to add new service and routes to the U.S..
Mexicana de Aviación Relaunches as State-Owned Airline
The state-owned Mexicana de Aviación was relaunched under the management of the Secretariat of National Defense, aiming to offer affordable flights and enhance connectivity from AIFA.
AIFA Achieves Profitability
The Felipe Ángeles International Airport (AIFA) recorded its first net profit, reaching financial self-sufficiency and operating without federal subsidies.
Diehl Aviation Establishes New Production Facility in Querétaro
Diehl Aviation announced a new 8,000-square-meter production facility near Querétaro, set to begin operations by mid-2025, to support clients like Airbus, Boeing, and Embraer.
Mexicana de Aviación Closes Some Routes
One year after its relaunch, Mexicana de Aviación announced the closure of eight of its 17 routes from AIFA, citing a strategic review.
Aeromexico Returns to NYSE
Aeromexico returned to the New York Stock Exchange after four years of restructuring, marking a key step in its post-Chapter 11 capital strategy.
Volaris and VivaAerobus Announce Merger Agreement
Volaris and VivaAerobus announced an agreement to merge their holding companies, a transaction expected to close in 2026, aiming to further stimulate low-fare air travel in Mexico.
Volaris Launches 33 New Routes
Volaris announced the launch of 33 new routes starting in 2026, expanding its domestic and cross-border network, with a focus on regional cities and U.S. destinations, timed for the FIFA World Cup.
International Passenger Decline Amid World Cup
Mexico's aviation sector recorded a loss of 293,000 air passengers in June 2026, the largest contraction in Latin America, driven by a 6% decline in U.S. cross-border travel, airline capacity cuts, and high jet fuel costs, despite the start of the FIFA World Cup.
Mexico Air Cargo Market Reverses Decline
Mexico's air cargo market grew 4.7% in the first half of 2026, reversing a previous decline, supported by stronger cross-border trade with the United States and the resolution of a bilateral aviation dispute over cargo operations.
Volaris Expands U.S. Routes from Guadalajara
Volaris announced three new direct routes from Guadalajara to Raleigh-Durham, Boston, and Nashville, U.S., starting October 15, further strengthening its connectivity between Mexico and the United States.
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🔍Deep Dive Analysis
The Mexican aviation industry has navigated a complex landscape marked by regulatory challenges, strategic infrastructure projects, and a competitive market. A significant turning point occurred in May 2021 when the U.S. Federal Aviation Administration (FAA) downgraded Mexico's aviation safety rating to Category 2, citing non-compliance with International Civil Aviation Organization (ICAO) safety standards. This downgrade severely restricted Mexican carriers from launching new routes or adding capacity to the lucrative U.S. market, costing the industry over US$1 billion. After nearly two years of collaborative efforts between Mexico's Federal Civil Aviation Agency (AFAC) and the FAA, Mexico successfully regained its Category 1 status in September 2023, unlocking new opportunities for growth and international connectivity.
Simultaneously, the Mexican government pursued ambitious infrastructure and airline projects. The Felipe Ángeles International Airport (AIFA), inaugurated in March 2022, was designed to alleviate congestion at Mexico City International Airport (AICM) and serve as a new hub. Initially struggling with low passenger numbers, AIFA has steadily increased its traffic, handling over 7 million passengers in 2025 and projecting 9 million in 2026, partly driven by the 2026 FIFA World Cup. Crucially, AIFA achieved profitability in the first quarter of 2024 and is operating without federal subsidies as of August 2026, largely due to a federal decree in 2023 that mandated the transfer of dedicated cargo operations from AICM to AIFA. This move significantly boosted AIFA's cargo volumes, making it Mexico's primary cargo hub, handling 133,223.9 tons in January-April 2026.
The airline landscape has also seen major developments. The state-owned Mexicana de Aviación was relaunched in December 2023, aiming to provide affordable air travel and increase connectivity from AIFA. While it transported 382,011 passengers in its first year (2024) and expected 450,000 in 2025, it faced challenges, leading to the closure of some routes in early 2025. Meanwhile, established carriers like Aeromexico, Volaris, and VivaAerobus continue to dominate. Aeromexico returned to the New York Stock Exchange in November 2025 after restructuring and has been expanding its international network, expecting to operate 171 aircraft by the end of 2026. Volaris and VivaAerobus, both ultra-low-cost carriers, have seen robust passenger growth, with VivaAerobus leading the domestic market in 2025. In late 2025, Volaris and VivaAerobus announced an agreement to merge their holding companies, a transaction expected to close in 2026, aiming to further stimulate low-fare travel. Volaris has aggressively expanded its network, launching 33 new routes in 2026, including several to the U.S..
Despite these positive trends, the industry faces ongoing challenges. In June 2026, Mexico's aviation sector experienced a significant loss of 293,000 air passengers, the largest contraction in Latin America, primarily due to a 6% decline in U.S. cross-border travel, airline capacity cuts exceeding one million seats by U.S. carriers, and high jet fuel costs, despite the FIFA World Cup. The aerospace manufacturing sector, while growing with exports exceeding US$11 billion in 2024 and projected to reach US$13 billion by 2026, faces risks from trade uncertainty, workforce shortages, and logistics bottlenecks. The industry is also grappling with sustainability targets, with limited Sustainable Aviation Fuel (SAF) availability in Latin America. Overall, the Mexican aviation industry, valued at US$8.88 billion in 2026 and projected to reach US$12.41 billion by 2031, continues to grow, driven by domestic demand, tourism, and nearshoring trends, but must address structural constraints and policy uncertainties.
What If...?
Explore alternate histories. What if Mexican Aviation Industry made different choices?