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Latin American aviation outlook: uncertainty blankets 2019

Latin American airlines continue to face a level of uncertainty in 2019 as new governments in the region’s two largest markets settle in and navigate trade disputes, geopolitical issues and a potential global economic slowdown.

Currency devaluation in Brazil and Argentina and volatile oil prices are combining to force Latin operators to take a cautious approach to 2019, but domestic demand in each of those markets appears to be stable as customers opt for domestic instead of international travel.

The growth of Latin American ULCCs and low cost airlines continues unabated as new start-ups in Chile and Argentina work to grow their respective market shares domestically; however, yields in those markets are likely to remain under pressure well into 2019.

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