US-to-Latin America aviation: JVs and LCCs change the dynamics

US airlines are dominant on markets between the USA and Latin America, and in many ways that dominance will remain intact as the large US airlines work to solidify immunised joint ventures between the two regions.

Hubs in both those regions will continue to play key roles in North-South traffic flows as those JVs evolve, with Sao Paulo, Bogotá, Panama City, Lima and Santiago continuing to bolster their connectivity between the two regions.

Low cost airlines based in the US and Latin America will continue their expansion as new aircraft models with the capability of operating on longer routes and benefitting from improved cost performance create opportunities for expansion into markets previously not viable. However, it appears that expansion will occur at a measured pace as most operators in the region are using new generation narrowbodies to drive cost efficiency.