By Kylie Madry

MEXICO CITY, Feb 3 (Reuters) - Mexico's busiest airport needs a third terminal just to hit demand for travel to and around the capital, the CEO of flagship airline Aeromexico AERO.MX said on Tuesday.

• Mexico City's main airport has become a flashpoint for tensions between Mexico and the U.S. over much-coveted flight slots assigned to airlines. Mexico took some slots fom Mexican airlines to give them to U.S. competitors late last year after the U.S. took away some routes from Mexican airlines.

• The debate dates back several years, after the Mexican government opened a new airport outside of the capital and forced cargo flights to relocate there.

• "I wouldn't give up on the idea, we need to go for it," CEO Andres Conesa said regarding a possible third terminal at the Mexico City International Airport.

• "If you take the three (airports around Mexico City), plus a new terminal, you can hit 100 million passengers in a year - the minimum that the metropolitan area needs," he told journalists at an event to accept an award as the world's most on-time airline.

• Conesa said that he believed the dispute between the U.S. and Mexican governments would be resolved soon. His airline was hit by the U.S. route cancellations, and said the carrier couldn't "go on forever without boosting capacity to U.S. cities."

• Cargo volumes were also hit by the "tariff war" kicked off by the U.S., Conesa said.

(Reporting by Kylie Madry; Editing by Brendan O'Boyle)

((Kylie.Madry@thomsonreuters.com;))