The recovery of the Latin American & Caribbean aviation industry has faced a setback, according to the Latin American & Caribbean Air Transport Association (ALTA). About 31.3 million passengers were carried during January in the region, 3.6% below pre-pandemic levels.
A minor setback?
Latin America & Caribbean may have some headwinds ahead, according to recent reports by the main airline body in the region. ALTA, which represents airlines such as Aeromexico, Aerolíneas Argentinas, GOL Linhas Aéreas, Copa Airlines, and Avianca, has said there was a slowdown in the traffic recovery in the region in January versus the previous months. Moreover, the association said that high jet fuel prices could hamper the growth of regional airlines in the next few years.
In January, 31.3 million passengers were carried in the region. This figure represented 3.6% below January 2019 levels, although it also represents a 21% increase in passenger numbers versus January 2022. Compared to December 2022, there is a slowdown, as that month, the region had 32.3 million travelers, reported ALTA.
José Ricardo Botelho, ALTA’s Executive Director and Chief Executive Officer, said,
“In recent years, the aviation industry in Latin America and the Caribbean (LAC) has shown huge resilience and, in 2022, consolidated its position as the world’s region with the best passenger recovery rates. January’s data reflects a slight slowdown in the path and the challenging prospects we will face in 2023.”
Not leading the recovery
For the first time in months, the Latin American and Caribbean region did not lead passenger recovery globally. In January, it was Africa that achieved the world’s best recovery, with 99.6% versus pre-pandemic numbers. Latin America and the Caribbean ranked as the second region in the world with the highest recovery, followed by the Middle East and North America, both regions with 95.7%, Europe reaching 81.8%, and Southeast Asia with 75.6%.
José Ricardo Botelho added that many factors are playing against the industry’s operational and financial recovery. These factors include the high price of jet fuel (both conventional and sustainable), the high taxes on ticket prices across the region, and the lack of competitiveness and outdated regulations that do not encourage industry growth.
Who leads the recovery in Latin America?
Continuing with the trend seen last year, the Dominican Republic and Mexico led the recovery of international passenger traffic in January 2023, said ALTA.
The Dominican Republic reached 111% of its 2019 levels in January, while Mexico reached 116%. Meanwhile, Brazil, Chile, and Argentina experienced a slight slowdown compared to the previous month, reaching 76%, 79%, and 70%, respectively. Peru is also at about 73% of its pre-pandemic levels.
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Despite the general slowdown, domestic traffic levels exceeded the pre-pandemic levels by 1%, led by Mexico (with a 25% growth due to a strong market in which Volaris, Viva Aerobus, and Aeromexico are thriving). Argentina exceeded its 2019 levels for the first time since the pandemic began, reaching a 1% growth. Brazil was at 93% and Chile at 88%.
