Latin America’s airline CEOs discuss the market, liberalisation, challenges & opportunities. Part 1

Latin America airline CEOs: On market conditions, liberalisation, challenges and opportunities. This is Part 1 of a two part series. For Part 2, please visit centreforaviation.com/IATA6

The outlook for Latin America's aviation sector is starting to brighten after a difficult couple of years. The long-term prospects for growth remain bright as economies recover, the middle class expands and new LCCs are launched. Following the recent changes in Argentina most of the region's markets have liberalized and are now open.

However, infrastructure challenges and regulatory issues, including high taxes on international air travel, still need to be overcome.

Latin America is a market dominated by four main full service airline groups - Aeromexico, Avianca, Copa and LATAM. These four players account for nearly 40% of total capacity in Latin America (includes capacity flown by foreign airlines) and nearly 50% of total capacity flown by Latin American carriers.

A small group of LCCs has had a sizeable presence over the last decade in the region's two main domestic markets, Brazil and Mexico. LCCs are now gradually starting to make inroads in other markets across the diverse region. Three LCCs have launched over the last year (in Colombia, Costa Rica and Peru), bringing the total number of LCCs in Latin America above 10 for the first time. More LCCs are planning to launch over the next year, including in Argentina, Chile and Uruguay.