Mexico's aviation regulator AFAC faces 73% budget cut in 2027, raising safety rating fears
Why It MattersDeep regulatory funding cuts risk another FAA safety-rating downgrade that would again curb Mexican carriers' US route expansion and cross-border connectivity ambitions.
Mexico's federal government has proposed a 2027 budget that would cut funding for the Agencia Federal de Aviación Civil (AFAC) by 73.3%, from MX$657.5 million to MX$175.45 million ($10.216 million), a level industry observers call one of the lowest since the agency was established and far short of the roughly MX$2 billion AFAC has said it needs annually to oversee aviation safety, airlines, aircraft and airports. SENEAM, Mexico's air traffic control agency, would see its funding cut by nearly 76% to about MX$926 million.
Mexico's National Chamber of Air Transport (CANAERO) and IATA issued a joint statement saying the proposed budget falls far short of what is needed, citing rising fuel prices, complex bilateral regulatory processes and growing operational demands, and called on the Ministry of Finance and Public Credit and the Chamber of Deputies to reconsider the measure.
The cuts raise concern over Mexico's Category 1 aviation safety rating with the US Federal Aviation Administration, which audited AFAC in August with results expected in October. Mexico previously lost Category 1 status in 2021, was downgraded to Category 2, and took more than two years to have it restored; during that period the FAA revoked 13 route authorisations for Mexican carriers and barred new transborder routes or added frequencies. A renewed downgrade would again restrict Mexican carriers from launching new US routes or expanding frequencies and would set back ambitions to grow cross-border traffic between Latin America and intercontinental markets.
AFAC said the Ministry of Finance and Public Credit will guarantee the resources necessary for it to carry out its regulatory, supervisory and oversight functions, though it gave no details on any supplementary funding mechanism or amount outside the 2027 budget plan. Separately, the Mexican Transport Institute reported passenger numbers rose 0.6% year on year in July, while cargo tonnage increased 2% over the same period.
