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Monday, August 2, 2021
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Aeroméxico plan June awakening, but Interjet’s future is in doubt

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Passengers heading to Mexico board an Interjet flight in Guadalajara in 2018. Photo: SFGate

Aeroméxico is reopening some international routes and increasing frequency to Asia, Europe, the United States, Canada and some Latin American countries in May and June.

The airline still flies to Merida once daily and has scheduled multiple daily flights starting in June.

Mexico’s second-largest carrier, Volaris, is considerably reducing its May flights. But the low-cost airline was in a good financial position before the pandemic, with a cash balance representing 23% of its 2019 revenues.

The No. 3 carrier, Interjet, remains totally grounded, but plans to resume “many more routes” in June. They downplay speculation that the budget airline might not survive the pandemic, but the closure of airspace in South America means Interjet is taking a bigger hit than Volaris.

The National Health Council declared a national “sanitary emergency” March 30. Although Mexico made the declaration much later than other nations, its airlines still took action weeks before canceling services substantially.

Although airports are still operating, all the hotels in Cancun and Mexico City were ordered shut down. In Merida, the airport and just a dozen out of over 100 hotels are open, mainly serving health workers and government officials.

There is reason to worry about the future of Interjet, which has not disclosed its financial results since the first quarter of the fiscal year 2019. The airline was suspended from the International Air Transport Association “for the reason for the non-payment of a clearance balance.” The federal government said the airline can’t prove it is capable of committing to its obligations.

Since January, Interjet has reduced its fleet from 66 Airbus aircraft to only eight A320s and one A321neo. In mid-April, Mexican tax authorities sealed off the home and assets of Interjet’s owner for failing to pay the airline’s tax debt.

Interjet states it has ample assets to cover its $28.16 million tax debt, but did not commit to resuming the 50 national and international routes it previously offered.

Source: Airline Geeks

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