• RISK: The severe demand reduction in air travel derived from the coronavirus pandemic will heavily impact Mexican airlines with some facing the risk of filing for bankruptcy absent a support package agreed with government, according to airline industry experts.
• DEATH: “An airline that was solid is going to feel the impact, yes. But one that already had problems is going to die”, said Juan Antonio José, an independent analyst of the Mexican airline sector, who preferred not to give names of those companies that are at risk.
• SITUATION: Earlier this week, Mexican airline Interjet suspended all international flights citing the global turmoil in air travel demand and increasing travel restrictions. On Tuesday, Mexico’s largest domestic airline Volaris said it will decrease 50% its planned capacity for March and April.
• SUPPORT: According to expert Alejandro Cobián, the Mexican government along with airport groups, airlines and unions should agree in the coming weeks on a support package for the industry. In the absence of any support soon, the risk for bankruptcy could extend to all airlines, he said.
