The iconic airline is flying into financial trouble, reporting losses of MX$932M and cutting nearly half of its routes. With an 86% budget cut for 2025, the airline’s future looks uncertain.
Mexicana de Aviación Faces Financial Turbulence Amid Budget Cuts and Route Suspensions
Mexicana de Aviación is battling significant financial losses, reporting over MX$932 million in deficits by late 2024. Revenues cover only 20% of expenses, forcing the state-owned airline to cut nearly half of its routes, including major destinations like Acapulco and Guadalajara.
The airline faces an 86% budget reduction for 2025, jeopardizing plans to expand passenger services and boost employment. Although new Embraer aircraft are expected in May, financial constraints could delay fleet upgrades.
Mexicana’s struggles highlight broader concerns over the viability of government-run businesses in competitive markets, raising questions about their long-term sustainability and impact on public finances.
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