Latin America: recovery well under way, but familiar challenges remain

The recovery of air travel across Latin America is well under way.

In fact, for the week commencing 22-Aug-2022 capacity is down just 2.3% on the same week in 2019, according to OAG schedules and CAPA seat configurations. That is the best performance of any region since before the COVID-19 pandemic.

Latin operators are offsetting some of the cost of fuel by pushing fares higher, and they are fortifying their fleets against fierce competition. Consolidation of airlines is viewed as a 'positive development' for the region.

However, speaking at the CAPA Latin America Aviation & LCCs Summit, CAPA senior analyst Lori Ranson noted that some familiar challenges remain - fuel prices, uncertainty with new governments in Peru, Chile and Colombia, and the upcoming election in Brazil. Taxation seems like it is a never-ending threat, and currency fluctuations remain a challenge.