Paths diverge for ULCCs in Latin America and the US

A contrast is emerging between ultra-low cost carriers in Latin America and their counterparts in the US.

For many budget carriers in Central and South America and the Caribbean, opportunities to grow their passenger bases remain robust.

It's a different story in the US, where Frontier and Spirit remain under the microscope after a period of underperformance. Those airlines are being forced to move upmarket as passenger preferences for premium experiences show no signs of weakening.

That added complexity comes at a cost, and it is so far unknown whether the product pivot will result in a change of fortunes, particularly as airlines battle cost pressure - wages in the US continue to grow.

What seems more clear is that Latin ULCCs have a path to build share, rather than stealing it from full service competitors.