Mexico: Demand for flights falling amid security concerns

Airlines say demand for travel to Mexico’s beach resorts is in decline, a development that comes as security concerns in the region have made headlines in recent months. United reported Wednesday that passenger revenue from available seat miles for Latin America fell 2.9% during April, May and June, compared to the same period a year earlier. The drop contrasted with gains in travel across the Atlantic and Pacific oceans. “While the region is more challenged than others, flights to Mexico beach destinations in particular have pretty severe demand weakness due to increased supply and travel warnings,” said Andrew Nocella, United’s chief commercial officer. “We expect Latin performance to trail other regions for the remainder of 2018.” Delta reported July 12 that unit revenue from Latin America was up slightly during Q2 after a 1.3% reduction in capacity, but only because the Caribbean rebounded faster than expected after last year’s hurricanes. “Weak demand to Mexican beaches and currency devaluations were offset by strength in Central America and the Caribbean,” President Glen Hauenstein said. But with the Mexico election over and stabilization of the peso, Hauenstein said business markets are improving in H2 2018. “Our (joint-venture) partnership with AeroMexico, which just celebrated a one-year anniversary, gives us a great platform for providing the best products for business and leisure travellers to and from Mexico,” Hauenstein said. The State Department updated its travel advisory for Mexico on Monday, urging travellers to “exercise increased caution” because of crime.<br/>