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New U.S. Aviation Deal Results in More Flights to Mexico

08 September, 2016

Winter is coming… Does the thought of cold weather already have you dreaming about winter vacations at the best beaches in the world? If so, look no farther than Mexico, where you can now travel cheaper and more easily than ever before thanks to a new air transport agreement between the U.S. and Mexico that lifted most flight restrictions and opens up the ability for an unlimited number of airlines to fly between the two countries.

“It’s about to get easier and more affordable to hop a plane to Mexico,” wrote MoneyTalksNews.com. “Previously, rules had limited particular flight routes to just two or three airlines from each country. The relaxed rules allow airlines to set their own routes, flight times and airfare.”

The change took more than two years of negotiations between the United States and Mexico to finalize the terms of the new agreement, which also gives expanded opportunities to cargo carriers to provide service to new destinations. The move comes just in time for travelers to take advantage of the best beaches in the world and experience the best winter vacations in Mexico this coming season.

“Some airlines have already announced that they will begin offering new flights to Mexico later this year,” wrote the Houston Chronicle. “Delta,American and Southwest have already expressed their intent in expanding their roster of destination cities in Mexico.” 

Travel Weekly reported that low-cost Mexican airlines like Interjet, Volaris and VivaAerobus may be poised to become the largest beneficiaries following the new agreement, while among U.S. carriers JetBlue and Southwest are most likely to benefit from the deal. This and talk of other new deals prompted Adam Levine-Weinberg of The Motley Fool to predict that Volaris and Delta will soon present two new ways to invest in rising Mexico air travel.

“In Mexico, domestic airline passenger traffic has posted double-digit year-over-year growth every month since February,’ he wrote. “International passenger traffic in Mexico has also risen at a consistent double-digit rate since April.” 

According to Levine-Weinberg, there are two ways to invest in Mexico and net on the continued growth of the nation’s air travel market. One is via Mexican budget carrier Volaris (NYSE: VLRS) and the other is Delta Air Lines (NYSE: DAL),which has partnered with Aeromexico to accommodate growing travel demands. 

“Delta’s management team sees Mexico as a key growth market because its economy is on a much steadier footing than many other emerging markets,” he added. “To take advantage of this growth,Delta has acquired a 17% stake in top Mexican airline Aeromexico.” 

In fact the Cancun International Airport has continued to show strong passenger growth according to recent numbers, amounting to an increase of 11.33 percent among domestic travelers during the first half of 2016 and an increase of 7.76 percent in total passenger arrivals and departures. During the same period, international traffic rose by 6.46 percent. This news clearly demonstrates that Mexico tourism is on the rise and the nation offers the best winter vacations in the world, along with some of the best luxury condos and vacation home rentals. And, of course, we already know Mexico has the best beaches in the world!

“The growth in the number of passengers reflects the success of our tourist destination,” stated Eduardo Rivadeneyra, who serves as head of public relations at Cancun International Airport. “We are working to get more visitors and ensure the best possible experience passing through the airport.”

Major Mexican airport operator Grupo Aeroportuario del Sureste (NYSE: ASR / BMV: ASUR) has also reported growth in 2016, stating that total passenger traffic rose by 8.4 percent in February compared to the previous year, along with a rise of more than 10 percent for the month of April and 16.3 percent for May.

“Domestic traffic grew across all nine of ASUR’s Mexican airports, up 10% year over year,” wrote The Motley Fool. “It was the continued growth of its Cancun airport, which accounts for roughly half of its domestic traffic, that helped lay the foundation. International traffic is also very strong, up 9.4%.”

As of this writing, the list of new flights already coming into Mexico during 2016 or announced for the coming winter season is pretty impressive – check it out: Turkish Airlines began offering services to the Cancun International Airport in May from Istanbul; American Airlines has launched four new direct flights from Raleigh-Durham,Pittsburgh,Nashville and Kansas City to Cancun; Dynamic International Airline began offering daily flights between New York and Cancun in May and also announced the addition of four weekly flights from Los Angeles to Cancun; Air Canada announced it will launch new seasonal services between Montreal and Puerto Vallarta; Southwest Airlines will operate the first non-stop flights from Oakland International Airport to Puerto Vallarta and Cabo San Lucas starting in February of 2017; Volaris Airlines added a new route to Puerto Vallarta from Toluca; Frontier Airlines has opened up a new seasonal route from Chicago O’Hare to Puerto Vallarta for winter 2017; Falcon Holidays and Thomson, a TUI Group company, launched a new direct flight from Dublin to Cancun; and Delta has already announced three new routes following the new air transport agreement with the United States, including daily non-stop flights between Los Angeles and Cabo and between New York and Cancun starting in December, as well as a third link between Kansas City and Cancun.

Want to know more about the best winter vacations and vacation home rentals in Mexico? 

Investment Properties Mexico is ready to show you around! Our trusted real estate professionals have access to the best Mexico beach condos, vacation homes, and luxury condos available. We also have the necessary experience to guide our clients through every step of the buying process. Remember, winter is coming! Click here to contact us and learn how to safely invest in Mexico real estate today!

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Topics: Travel United States