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COVID-19 outcome: South American airlines increase competition

Premium Analysis

As South America’s two large full service carriers, Avianca and LATAM Airlines Group, continue to restructure during their respective bankruptcy processes, they are adding back capacity in markets that are recovering at a solid pace – Colombia and Brazil

Low cost operators in those markets are continuing to add back capacity at a faster rate, believing that even as legacy airlines will be nimble post Chapter 11, opportunities for growth remain in Latin America

The result should be interesting competitive dynamics as the region continues its work to adjust to the realities of the COVID-19 pandemic. 

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