Peso Strength Shields Mexico from Jet Fuel Price Spike
The strength of the Mexican peso has helped mitigate the impact of rising jet fuel prices on the country's airlines. According to the International Air Transport Association (IATA), Mexico was not as severely affected by the price increase due in part to the peso's appreciation against the US dollar.
The IATA noted that the peso's 15% appreciation against the dollar, combined with a smaller regional increase in fuel prices, allowed Mexican airlines to face an 86% increase in costs. This is significantly lower than the levels recorded in other markets.
Global jet fuel prices rose by 121% year-over-year in April due to the ongoing war in the Middle East. However, not all countries experienced the same level of price increases. Brazil benefited from its currency's strength, while Japan and India saw significant increases in fuel prices.