Airline Weekly Lounge

Airline Weekly Lounge Episode 110: A Mess in Mexico

November 21, 2018

More and more people are traveling by air in Mexico, but Mexico’s airlines continue to struggle. All four of its main carriers had a disappointing 3rd quarter, which is historically peak season. VivaAerobus at least made a little money. Aeroméxico and Volaris barely broke even. And, Interjet’s numbers were simply alarming.

Fortunately, oil prices have dropped so much that the outlook for airlines everywhere has changed. In the U.K., easyJet posted earnings that were strong but not nearly as good as LCC rivals Ryanair and Wizz Air. Is that a problem? LATAM is navigating economic headwinds well. AirAsia X seems to be proving that “low-cost longhaul” remains a difficult business model. Lastly, Flybe’s ongoing struggles raise this question for some: Is an acquisition in order?

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