COVID surges create hurdles for South American airlines

Premium Analysis

Recovery from the COVID-19 pandemic in South America has stalled as the region’s largest country, Brazil, is experiencing a surge of infections and deaths. Elsewhere, Chile has closed its borders for a month and Argentina has also instituted restrictions. 

The region’s airlines expected some setbacks during the recovery from the crisis, but the latest rise in infections is creating new layers of uncertainty for some operators that just a few months ago believed the worst was behind them. 

There are also longer term effects for those countries experiencing setbacks in managing the COVID-19 crisis. The longer their respective borders remain closed off, the further out a full recovery in international travel will be pushed, which will ultimately prolong a full recovery in air travel demand. 

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