US airlines' emerging positive Latin America trends

Although Latin America remains challenging as currency pressure continues in Brazil and Argentina, the three large US global airlines have detected positive trends emerging in the region, with improvement in Mexico on the horizon as some capacity rationalisation takes shape in Mexico-US markets.

Capacity is also falling in the Brazil-US market and Delta Air Lines had declared plans to slash supply to Brazil by 20% in 2019. Delta also believes that Latin America should be its best performing regional entity in 1Q2019.

One bright spot for US airlines is the Caribbean, with the large three US global network airlines citing positive revenue trends in those markets, which could help to offset some of the continued weakness in other Latin regions.