Airline breakups and breakdowns

MXPE Weekly Essentials ft. Morena hits 10M, beer exports fall, and other highlights in Mexican politics, policy, and markets from the past week.

MXPE Weekly Essentials. Only the most important news in Mexican politics, policy, and markets from the past week.

Uncharted Mexico: Mile-high break up

An order from the US government for Delta and Aeromexico to dissolve their alliance threatens to end a winning streak for both airlines. The companies said their coordination of flights creates jobs and helps stimulate cross-border tourism and trade, but the US government claimed anti-trust issues but is chiefly angry that Mexico has forced its cargo to go through the government’s new airport on the outskirts of Mexico City (known as AIFA).

Delta and Aeromexico’s cross-border operations have been some of the few to have done well this year, growing 4.5% and 5.7% respectively so far this year, while most other international carriers have had double-digit losses. The only major exception has been Viva Aerobus, whose aggressive budget services and happiness to move to the distant AIFA has boosted its global flights by 23%.

It is all part of a broader trend that has seen US airlines lose market share of international flights from Mexico to Mexican carriers. Also, notably, Latin American airlines have overtaken those from Europe so far this year.