The cost of plane tickets for the popular route between Mexico City and Cancun has more than doubled over the past decade, increasing from 1,526 pesos to just over 3,000 pesos.
An analysis by El Financiero reveals that the average cost of plane tickets for this route has risen by 103 percent in the last ten years. Data from the Mexican Institute of Transportation (IMT) shows that the cost of a plane ticket between Mexico City and Cancun went from 1,526 pesos in September 2015 to 3,099 pesos in the same month this year.
This price increase contrasts with the accumulated inflation of 55.7 percent during the same period, according to INEGI. Thus, the real increase in the cost of a plane ticket for this route is 47.3 percent over the last decade.
The increase could be even greater on some routes due to anticipated hikes in Airport Use Fees (TUA) by airport groups, which represent around 60 percent of the ticket price.
Last week, the consulting firm OAG, which provides information on airlines and airports worldwide, warned that Mexico is one of the countries where airline prices have continued to rise post-pandemic. This is mainly due to a drop in the supply of seats as Viva Aerobus and Volaris face challenges with their fleets.
According to OAG, 75 percent of routes in Latin America have seen increases in seat capacity and reductions in average airfares. However, this trend does not apply to the Mexican domestic market.
Prices That Soar
El Financiero reviewed the average fares of Viva Aerobus and Volaris, revealing their fare costs in quarterly reports to the Mexican Stock Exchange (BMV).
Between 2018 and the third quarter of 2024, the average price of a Viva Aerobus fare, excluding additional services, increased by 77.4 percent, from 525 to 931 pesos. During this period, the airline, led by Juan Carlos Zuazua, increased airfare prices 40 points above accumulated inflation.
Meanwhile, the average total fare, including the cost per fare and additional services, increased by 64.9 percent in the same period. In 2018, it cost a passenger an average of 1,000 pesos to travel with Viva Aerobus; now, the cost is 1,659 pesos.
With higher ticket costs through fares and complementary services, Viva Aerobus has managed to overcome operational challenges and increase its income by 38 percent annually in the first three quarters of this year.
On the other hand, Volaris has seen a 32 percent increase in its average total fare between 2018 and September of this year, 5 points below accumulated inflation in the same period. Additionally, its average base fare has decreased by 6.6 percent, from 1,000 to 938 pesos.
“We have further disaggregated our fares, keeping base fares at 2019 levels and increasing our ancillary revenues as a percentage of total operating revenues,” said Volaris CEO Enrique Beltranena in a call with analysts after issuing its third-quarter financial report.
The airline noted that the greatest growth has been in revenues linked to ancillary services, which have soared by 122 percent in the last six years. Although the average fare has dropped, passengers have opted to purchase additional services, increasing the average total cost of a Volaris ticket.
“We are committed to continuing to combine low and stable fares with honest services that add value,” Beltranena added.
Source: El Financiero
