CAPA Latin America Summit: tax and infrastructure reform essential

Premium Analysis

Latin America remains one of the world’s most promising aviation markets, with passenger levels projected to rise by more than double by 2036. The region is ripe for low cost penetration, and Latin America’s full service airlines are working to ensure their competitiveness. 

But there are short and long term obstacles that Latin American airlines continue to face. In the short term, rising fuel costs and currency devaluations are pressuring demand. Over the long term, taxation and infrastructure constraints remain significant challenges for the region’s airlines.

Even as aviation stakeholders continue their unrelenting work with governments to move the needle on taxation and infrastructure, there have been some positive developments in tax relief and a willingness to consider changes in airport concession contracts.

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