CAPA - Centre for Aviation, in a report entitled: 'Latin America aviation: Growth accelerates as structural constraints tighten', stated (03-Jun-2026) aviation in Latin America has entered a rare phase in which growth and constraints are advancing simultaneously. Passenger traffic continues to expand at rates exceeding many developed markets, premium demand is reshaping airline economics, and regulatory liberalisation in key countries is opening opportunities that appeared politically unattainable only a few years ago. Yet the region's operating environment remains among the most challenging globally. Infrastructure bottlenecks, taxation, currency volatility, aircraft availability constraints and regulatory fragmentation continue to erode profitability despite strong demand fundamentals. [more - CAPA Analysis]
Background ✨
IATA said Latin America's aviation sector combined strong growth potential with persistent structural challenges, with Latin American airlines posting an 8.6% year-on-year traffic increase in 2025 amid high operating costs, regulatory complexity and infrastructure underinvestment.1 IATA regional VP for the Americas Peter Cerdá said excessive taxation, regulatory complexity and widespread airport congestion constrained growth, citing policy debates in Colombia, Mexico and Brazil and criticising Lima's transfer fee.2