Economy Country November 14, 2024

Increase in Airfare from CDMX to Cancun

The average airfare for the popular route from Mexico City to Cancun has increased by 103% in the last decade, reaching 3,099 pesos this year. This surge contrasts with the 55.7% inflation rate, indicating a real increase of 47.3%. The rise in airfares is attributed to limited seating availability by airlines such as Viva Aerobus and Volaris after the pandemic. While Latin America has seen fare reductions, Mexico's domestic market continues to face rising ticket prices.


Increase in Airfare from CDMX to Cancun

According to an analysis conducted by El Financiero, the average cost of airplane tickets for the most popular route in the country, from Mexico City (CDMX) to Cancun, increased by 103 percent in the last decade, from 1,526 pesos in September 2015 to 3,099 pesos in the same month of this year. This increase contrasts with the accumulated inflation during that period, which was 55.7 percent, resulting in a real increase of 47.3 percent in the cost of tickets on this route over the last decade.

The rise in airplane ticket prices could be even greater on some routes as airport groups are projecting increases in the Airport Use Fees (TUA), which would directly impact the final price of the tickets. This charge represents about 60 percent of the total cost of the ticket. Furthermore, the consultant OAG revealed that in Mexico, flight prices have continued to rise after the pandemic, mainly due to the reduction in seat supply due to challenges faced by airlines like Viva Aerobus and Volaris regarding their fleets.

The average fares of Viva Aerobus and Volaris have been reviewed by El Financiero. Between 2018 and the third quarter of 2024, the average fare of Viva Aerobus (excluding additional services) increased by 77.4 percent, rising from 525 to 931 pesos. In the same period, the total average fare, considering both the fare cost and additional services, increased by 64.9 percent, meaning that a passenger who paid 1,000 pesos in 2018 now spends 1,659 pesos to fly with Viva Aerobus.

On the other hand, Volaris has experienced a 32 percent increase in its total average fare between 2018 and September of this year. Although the increase has been lower than the accumulated inflation in the same period, the airline has observed a 6.6 percent increase in its average base fare and a greater growth in revenue from complementary services, which have skyrocketed by 122 percent in the last six years. Although the average fare has decreased, passengers have opted to purchase additional services, increasing the total average cost of a Volaris ticket.