Latin American aviation faces a paradox : it has all the ingredients for takeoff—vast geography, large populations, and expanding economies—but it is burdened by structural costs that limit its growth. This was the point made by Willie Walsh, Director General of the International Air Transport Association (IATA) , during the organization’s 82nd Annual General Meeting, held in Rio de Janeiro. His message was direct: if taxes and regulatory burdens remain high, much of that potential will remain unrealized.

The diagnosis is not an exaggeration. Last April, total air traffic in Latin America and the Caribbean reached 39.2 million passengers , a year-on-year increase of 1% compared to the same month in 2015. This figure contrasts sharply with the start of the year: in January, 45.1 million passengers traveled, an increase of 6.2%, driven primarily by domestic and intraregional connectivity. The subsequent slowdown, according to the reports themselves, is due to less dynamism in the Brazilian and Mexican markets, the region’s two traditional engines of growth.

But the criticism turned to the Peruvian case: if Lima introduces a tax on connecting flights, Walsh warned, “it will simply take passengers to another destination,” which highlights something governments often underestimate: the elasticity of air travel demand in relation to costs. Walsh summarized this with a compelling statistic about Brazil, where a 26.5% tax on tickets discourages international tourism to a country that, on paper, has one of the strongest destination brands on the continent.

Added to this is a structural problem: the cost of fuel, exacerbated by currency risk . Latin American airlines are among the best managed in the world, but with some of the narrowest margins in the sector globally. As has been said many times, this is an industry that moves enormous volumes of people and generates huge economic benefits in tourism, foreign investment, connectivity, etc., while its direct profitability is minimal.

The Mexican case illustrates both points. On the one hand, Mexico has growth opportunities, albeit at a slower pace, partly because it is a more mature market and partly because of the problems stemming from the US FAA’s Category 2 regulations, which threaten to be repeated.

On the other hand, there is concern about the real and nominal state of Mexico City International Airport (AICM) : slot limitations have it hamstrung. In 2025, AICM handled 44.5 million passengers, and a 10% growth is projected for 2026, but the ground infrastructure doesn’t allow it to maintain its runway capacity , which is 61 operations per hour . Walsh was clear: the major investment plans for AICM are on hold, and that’s the real question about its future capacity.

IATA’s message to the region’s governments is simple, albeit politically uncomfortable: competitive operating environments attract more traffic , generate greater economic benefits, and are more resilient than high-tax environments, which, once they drive away passengers and airlines, are much harder to recover. Domestic connectivity would be especially valuable for economic and consumer growth in countries where it is still underdeveloped.

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With this operation, the airline will reach seven direct routes from the United States to Vallarta , including Denver, Houston, Orange County, Sacramento, Austin and Phoenix, in addition to the San Diego–Puerto Vallarta connection that will begin on March 5, 2026.

According to Grupo Aeroportuario del Pacífico (GAP) , the airport operator, Puerto Vallarta becomes a strategic option for travelers who wish to combine games in nearby venues such as Los Angeles and Guadalajara with a few days of rest.

It’s worth noting that this infrastructure is undergoing its largest expansion in history, with an investment exceeding 9.2 billion pesos for the construction of the new terminal building . This space will have more than 74,000 square meters (m²), 15 additional contact positions, and LEED Gold certification, an international standard for sustainability and energy efficiency.

As of the end of October 2025, the Puerto Vallarta airport handled 5.6 million national and international passengers, “consolidating itself as a key axis for the tourism development of the region and as the most efficient gateway to the Puerto Vallarta–Riviera Nayarit corridor.”

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Four years later and after a 16-hour flight, China Southern Airlines reactivated connectivity with Mexico that was interrupted by the pandemic. This international route is the longest in China’s history with a distance of 14,147 kilometers, surpassing the Guangzhou-New York flight.

Miguel Torruco Marqués, head of the Ministry of Tourism (Sectur), detailed that this direct flight departs from the city of Shenzhen, China, to the Mexico City International Airport (AICM) for both passengers and cargo. It will have a layover on the return flight in Tijuana, with two weekly frequencies.

He mentioned that China is a key player in international tourism as both an origin and destination market globally and regionally, ranking first in Asia in terms of tourists traveling to Mexico. Additionally, China is positioned in the UN World Tourism Organization, previously UNWTO, as the second-largest spender in tourism after the United States, according to 2022 data.

During 2019, Mexico received 167,145 Chinese tourists by air, generating a tourism expenditure of 167,377 million dollars. In 2023, 161,316 tourists arrived from China, with an expenditure of 181,634 million dollars, representing an 8.5% increase compared to 2019.

In the first quarter of 2024, Mexico welcomed 52,140 Chinese tourists by air, representing a 54% increase compared to 2023, capturing 65,754 million dollars, 60% higher than the previous year.

Torruco Marqués pointed out that during the current administration, 423 international flights to Mexico have been created, with 60.8% from North America, 29.1% from Central, South America, and the Caribbean, 9% from Europe, and 1.2% from Asia.

China Southern Airlines currently operates more than three thousand daily flights to 224 destinations in 40 countries worldwide. The opening of this flight will further strengthen commercial and tourist ties between Mexico and China, with continued collaboration to promote tourism in Mexico.

Meanwhile, Zhang Run, Extraordinary and Plenipotentiary Ambassador of the People’s Republic of China in Mexico, celebrated the opening of the first direct flight between China and Mexico after the pandemic.

“This would not have been possible without the joint efforts of the government departments of Foreign Relations, Tourism, and Civil Aviation of Mexico,” he noted.

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