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Big changes and domestic aviation market reshuffles in Peru

Analysis

Peru's domestic aviation landscape has undergone significant changes in the last year and these culminated in the recent suspension of service by Peruvian Airlines, which had risen to become the country's second largest airline.

But the fate of Peruvian and other airlines has increasingly been called into question as low cost operators Viva Air Peru and Sky continue to grow in the market.

LC Peru, which had nearly an 8% share of Peru's domestic in 2018, has now ceased operations, and the question will be whether Peruvian can revive itself. Avianca Peru has turned its attention to international destinations, which are also creating some opportunities in the country's domestic market.

Even with all the jockeying occurring in Peru's domestic market, the long-standing market leader LATAM Airlines Peru is maintaining its dominance and is also looking at ways it can take advantage of shifts in the domestic landscape.

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