Avianca and LATAM shift focus more locally

Changing market dynamics are driving several network adjustments at Latin America's two largest airline groups - LATAM and Avianca Holdings. Those companies are navigating currency pressure and rising fuel costs, and as a result they are working to maximise the profitability of their respective networks.

LATAM is opting to cut some long haul flights and service to Argentina, and instead will focus on regional international routes and growing service in Brazil's domestic market as its competitor Avianca Brazil continues to shrink.

Avianca's adjustments include essentially exiting Peru's domestic market and cutting some service to the US from its Bogotá hub. At the same time, the company is opting to add capacity from Bogotá to some larger domestic routes in Colombia and Chile.

Airlines worldwide are constantly scrutinising their networks as demand patterns shift. For now, it appears that LATAM and Avianca see more opportunities within Latin America for fortifying their largest hubs.