# Financial instability in the Mexican aviation industry > Live situation record from CLSTR: https://clstr.news/situations/financial-instability-in-the-mexican-aviation-industry > Updated: 2026-08-27T13:14:07.000Z. Sources: 2. Developments: 2. The Mexican aviation industry is facing severe financial challenges. Private carriers, including Volaris, Aeroméxico, and Viva Aerobus, have reported substantial net losses driven by a sharp rise in fuel costs linked to geopolitical tensions in the Middle East. Volaris reported a 70% increase in average fuel costs, while Aeroméxico saw prices rise by 79.6% compared to the previous year. To manage these expenses without increasing passenger fares, airlines have implemented strategies such as reducing flight frequencies. Simultaneously, the state-run airline Mexicana de Aviación, managed by the military, is experiencing significant operational deficits. The carrier loses approximately 2.5 million Mexican pesos per day and has required over 3.8 billion pesos in government subsidies during the first half of 2026 to sustain operations. Despite its relaunch, Mexicana de Aviación holds less than 1% of the total market share and faces intense competition from the private sector. ## Timeline ### 2026-08-27: Mexicana de Aviación loses 2.5 million pesos daily Mexico's state-run Mexicana de Aviación is losing 2.5 million pesos daily, relying on heavy government subsidies to offset high operating costs and a market share of less than 1%. 2 sources. https://clstr.news/cluster/mexicana-de-aviacin-loses-25-million-pesos-daily ### 2026-08-08: Mexican airlines face heavy losses from rising fuel costs Mexican airlines Volaris, Aeroméxico, and Viva are facing massive losses as Middle East tensions drive up jet fuel costs, forcing carriers to reduce flight frequencies to avoid raising ticket prices. 2 sources. https://clstr.news/cluster/mexican-airlines-face-heavy-losses-from-rising-fuel-costs --- Cite as: Financial instability in the Mexican aviation industry. CLSTR, https://clstr.news/situations/financial-instability-in-the-mexican-aviation-industry