Latin American market evolution – A new competitive landscape beset by both new and familiar problems

The competitive landscape in Latin America has been profoundly altered by the COVID-19 pandemic. Three of the region’s largest airlines have emerged from Chapter 11 bankruptcy protection, ULCCs continue to proliferate and consolidation is gathering pace and scale. But, some familiar challenges remain: heavy taxation of the industry by the region’s governments remains a distinct threat, and regulatory and infrastructure issues remain unresolved. Outside of this, clouds of uncertainty are being cast for Latin American operators, with persistent uncertainty, social unrest and macroeconomic and geopolitical challenges.