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American Airlines and Delta Airlines dominate Mexico market

American Airlines and Delta Airlines dominated the market for passengers transported by international airlines in regular service in Mexico from January to September 2020, according to data from the Ministry of Communications and Transportation (SCT).

Leader in this service, American Airlines transported 1 million 880,000 passengers in the first nine months of the current year, a decrease of 49.5%, year-on-year.

Next was Delta Airlines, with 1 million 327,000 passengers and a decrease of 54 percent.

Airports located in major Mexican cities, such as Mexico City, Guadalajara and Monterrey, are served by national and international airlines, while airports located in smaller cities are limited to regular service from national airlines.

At the end of 2019, there were 77 airports in Mexico, of which 64 serve both domestic and international flights.

During 2019, the number of airline passengers on international and domestic flights to and from Mexico increased by 5.2%, compared to 2018, while the number of airline passengers on international flights to and from Mexico increased by 2.1%, compared with 2018.

American Airlines

Covid-19 has been declared a global health pandemic by the World Health Organization.

The pandemic has appeared in almost all regions of the world, prompting the implementation of important measures imposed by governments to prevent or reduce its spread, including travel restrictions, border closures, requests for «shelter in place» and business closings.

As a result, American Airlines said it has experienced an unprecedented decline in demand for air travel, resulting in a substantial deterioration in its revenue.

While its business performed largely as expected in January and February 2020, a severe reduction in air travel starting in March 2020 resulted in its total operating income declining approximately 20% in the first quarter of 2020, 86% in the second quarter of 2020 and 73% in the third quarter of 2020 compared to the first, second and third quarters of 2019, respectively.

In general, companies in the sector have taken aggressive measures to mitigate the effect of Covid-19 on their business, including deep capacity reductions, structural changes in our fleet, cost reductions and measures to preserve cash and improve their liquidity general position.

Other airlines

In Mexico, United Airlines handled 1 million 268,000 passengers from January to September 2020, a decline of 59.6% year-on-year.

In turn, comparing the same periods, Alaska Airlines transported 611,000 passengers, a decrease of 49.2%, and Continental Express provided services to 60,000 passengers, a reduction of 65.1 percent.

 

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