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Latin American aviation: GOL and Aeromexico uneasy about capacity

Analysis

The outlook for Latin American airlines appears mixed for the remainder of 2019 as some of the region's largest markets face weakening economies just as airline capacity begins to climb. Overall, the IMF is forecasting tepid economic growth for Latin America and the Caribbean in 2019 ahead of a rebound in 2020.

Some of the largest airlines operating in two of Latin America's largest aviation markets - Brazil and Mexico - are expressing concern about capacity growth. The airlines growing in those countries have stated the counterargument that their capacity increases are warranted and the growth is largely targeted towards uncontested markets.

For now, those airlines believe their respective rationales for capacity expansion remain sound, and they are not likely to backpedal on their growth.

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