Mexico could come out on top: The country’s aerospace industry anticipates increased sales due to the war in Iran

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The president of the Mexican Federation of the Aerospace Industry (FEMIA), Luiz Lizcano, stated that the current conflict in the Middle East will boost sales in the sector by generating greater demand for parts for military aircraft, and will aid in the recovery of civil and commercial aviation.

In an interview with EFE, Lizcano explained that these “positive pressures” from the war in Iran could generate a double-digit impact for the aerospace industry by the end of the year, after closing 2025 with growth of nearly 10 percent.

Lizcano detailed that more than 90 percent of what Mexico produces in the aerospace industry is destined for the civil and commercial sectors, such as passenger aircraft and private aviation.

However, he explained that “many of the parts used in aviation have a dual purpose, meaning they are used for both civil and defense purposes.”

“That’s also putting positive pressure on demand, and of course, that will undoubtedly generate more orders,” he said.

Furthermore, the president of FEMIA noted that the domestic industry recovered after the COVID-19 pandemic and maintains annual growth of between four and five percent, driven by the increase in the number of passengers using airlines.

This greater air travel, he indicated, translates into more aircraft orders and a greater need for equipment, which also contributes to the sector’s favorable outlook.

By the end of 2025, 20.6 million international tourists had arrived in Mexico by air, while domestic passenger traffic rose 3.3 percent to 63.5 million, and international passenger traffic increased 1.5 percent to a total of 58.9 million.

He also noted that part of the passenger fleet is being retired and often converted for cargo, increasing the need for new aircraft and reinforcing Mexico’s role in the global supply chain.

According to estimates from the Ministry of Finance and Public Credit, the conflict in the Middle East will be short-lived, with the main effects concentrated on fuel prices. Therefore, the Ministry has called for calm, stating that it has a mechanism in place to mitigate pressure on energy prices by suspending the collection of the special tax on production.

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Source: elfinanciero