US carriers face a mixed outlook in Latin America as yields in the region weaken
US carriers are facing some weakness in their Latin American performance as significant capacity growth between the two regions appears to be pressuring unit revenue and yields. All three major US network carriers with a robust presence in the market - American, Delta and United - watched their yields plummet during 4Q2012 as they expanded capacity significantly to Latin America year-over-year. The weakness during the last three months of 2012 follows a somewhat lacklustre performance by those airlines during 3Q2012, which could indicate the US-Latin American market is reaching a certain level of maturity.
During 4Q2012 American, Delta and United posted declines in unit revenue and yields on their routes between the US and Latin America. American recorded the greatest decline in unit revenues of 5.4% while United posted the largest slide in yields of 6.5%. Delta and American increased capacity to the region by 9.4% and 8.3%, respectively, while United's capacity declined slightly by about 1%.
US Airways, which has a marginal presence between the US and South America and the Caribbean (and doesn't break out yield and unit revenue performance by region), recorded a 3% drop in unit revenues in the region. The carrier serves only one market in South America, Rio de Janeiro, and several leisure points in the Caribbean. US Ariways' new service from its Charlotte hub to Sao Paulo begins in May-2013
Read More
This CAPA Analysis Report is 1,587 words.
You must log in to read the rest of this article.
Got an account? Log In
Create a CAPA Account
Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.
Inclusions | Content Lite User | CAPA Member |
---|---|---|
News | ||
Non-Premium Analysis | ||
Premium Analysis | ||
Data Centre | ||
Selected Research Publications |