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LATAM Airlines Group #1 in Peru: domestic & regional markets promising

Analysis

Peru's prominence in Latin America's aviation industry has continued to expand as domestic and international passenger growth reached 8.5% and 10%, respectively, in 2017.

Lima is a strategic hub for LATAM Airlines Group, but most of the company's international growth from Lima in 2017 occurred on regional routes within Latin America, and LATAM Airlines Peru dropped its fairly new US service to Washington Dulles in early Mar-2018.

The US remains a strategic market for Peru and LATAM, but LATAM could be holding off on further US expansion until it solidifies a joint venture with its oneworld partner American Airlines.

In the meantime, LATAM is capitalising on regional opportunities from Peru as Latin America's economic recovery continues.

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