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CAPA TV | October 16, 2019

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Latin America Aviation Outlook: Uncertainty Blankets The Future

CAPA
  • On October 3, 2019

Latin American Airlines continue to face a level of uncertainty as new governments in the region’s two largest markets settle in and navigate trade disputes, geopolitical issues and a potential global economic slowdown.

Currency devaluation in Brazil and Argentina combined with volatile oil prices are forcing Latin American operators to take a cautious approach to 2019, but domestic demand in these two markets appears to be stable as customers opt for domestic instead of international travel.

The growth of Latin American ULCCs and low cost airlines continues unabated as new start-ups in Chile and Argentina work to grow their respective market shares domestically; however, yields in those markets are likely to remain under pressure well into 2019.

What is the outlook for the next five years?

  • What historical drivers have impacted aviation previously?
  • What is the likely of future growth?
  • Update on fleet orders and deferrals.
  • What is the outlook for important routes such as Latin America to Europe and Latin America to the US?

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