Profits elusive despite Latin growth

While it is hardly unusual to hear airline leaders calling for lower taxes and better infrastructure, the frustrations voiced by Latin American airline leaders come against a backdrop where region-wide profitability remains elusive despite traffic and revenue highs. No region recovered faster from t...

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Bibliographic Details
Published in:Airline Business 2023-12, Vol.39 (4), p.16-16
Main Authors: Wolfsteller, Pilar, Dunn, Graham
Format: Article
Language:English
Subjects:
Air transportation
Air travel
Airline industry
Airlines
Airports
Aviation
Costs
Infrastructure
International economic relations
Latin America
Mexico
Pandemics
Planning
Prices
Profitability
Revenue
Traffic information
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Summary:While it is hardly unusual to hear airline leaders calling for lower taxes and better infrastructure, the frustrations voiced by Latin American airline leaders come against a backdrop where region-wide profitability remains elusive despite traffic and revenue highs. No region recovered faster from the pandemic than Latin America. Traffic data from the Latin American and Caribbean Air Transport Association (ALTA) shows passenger volumes topping 34 million in September 2023--an increase of 5% on pre-pandemic levels. Revenues too have come bouncing back. In 2023, turnover at five of the region's nine biggest carriers--Aeromexico, Copa Airlines, Volaris, Aerolineas Argentinas and VivaAerobus--exceeded 2019 levels. That has continued into 2023 with combined revenues for seven leading carriers up 28% in the first half year on year--the comparable period admittedly still impacted by Covid restrictions. These carriers were notably all profitable at an operating level over the first half--and several in the black for 2022.
ISSN:0268-7615
2632-6604
2632-7856