Weigh in all, the 2024 could be historic for Ecuador

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Despite all the bad news, the 2024 could be historic for commercial aviation Ecuador, as reported HIGH.

Lately there has been plenty of news, but not the good ones that we like to publish on this blog the most, But bad news about airlines leaving or others reducing frequencies has been the cover of this space, but everything seems like it won't be as bad as we might think.

A recent traffic report shared by HIGH, the Latin American and Caribbean Air Transport Association, showed great optimism for what this would be 2024, even describing it as: historic.

What would be Ecuadorian aviation this 2024

The 2024 It is shaping up to be a historic year for aviation in Ecuador, with a forecast of record in the number of international passengers. During the first four months of the year, have already registered 1.55 millions of passengers traveling to and from the country, which represents an increase in 8% in comparison with 2019, than to maintain the trend, would imply the largest number of international travelers in the country's history at the end of the year.

Ecuador's commercial aviation market had a total demand for 8.6 million passengers in 2023. The domestic market represented the 45% of the total market. This makes Ecuador the eleventh largest market in Latin America with 11 million total seats offered. With an average of 78% Of occupation.

Routes and airlines that Ecuador has lost in recent months

The air transport sector in Ecuador has experienced moderate growth since 2008 until 2023. With a Compound Annual Growth Rate (CAGR) of the 2.7% in the domestic market and 4.2% in the international market.

On 2023, the number of passengers on domestic routes amounted to 3.8 millions, 46% more of the 2.6 million in 2008. similarly, international traffic grew from 2.5 million to 4.7 million passengers in the same period, I feel the Quito route – Bogotá has the highest traffic in the international market with more than 603 thousand passengers.

This growth in air traffic is not only positive for the aviation sector, but it also has a significant impact on tourism and the Ecuadorian economy.. Air transport acts as a catalyst, generating new business opportunities, investments and job creation.

According to ALTA, despite the reduction in the general offer in frequencies and airlines, There are several actors that drive growth and statistics, until now, positive:

• The State Agenda: The Ecuadorian government has implemented a strategy that recognizes aviation and tourism as essential sectors for the socioeconomic development of the country..
• Tax reduction: EcoDelta and Tourist Power taxes have been reduced, which has allowed more competitive rates and has encouraged passenger demand.
• Better connectivity: Decreased costs have allowed airlines to offer more routes and frequencies, improving the country's connectivity with the rest of the world.

Although it grows, there are many challenges ahead. Despite this positive outlook, there are still challenges to overcome:

• High operating costs: The operating costs in Ecuador are considerably higher than in other countries in the region, which can affect the viability of airlines and the competitiveness of the sector.
• Passenger rights: There are some legal loopholes regarding passenger rights, such as the right to withdraw from the trip until 72 hours before the flight, that can generate uncertainty in airline planning.

When comparing operating costs in Ecuador with other key markets in the region such as Chile, Brazil, Mexico and Panama, a clear competitive disadvantage is observed for Ecuador. For instance, carrying out an international operation in Ecuador is, on average, almost three times more expensive than in Brazil and Chile. This cost difference not only affects the viability of airlines, but it can also have long-term consequences on the country's air connectivity.. High costs can limit connectivity options for passengers and negatively affect tourism and commerce, That is why it is necessary to address the challenges in time.

Although there are challenges to face, the future of aviation Ecuador looks bright, although the negative news this year points to the opposite. The country is on the right path to becoming a regional benchmark in air transport, promoting tourism, the economy and the well-being of the population.

Major airlines

Regarding the most important airlines operating in Ecuador, during the 2023 The list was the following:

It should be remembered that Equair has not operated since September 2023. We will wait until the end of this year to see how our aviation evolved despite the challenges that having fewer airlines and frequencies brings to the market..

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