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aviation in Latin America and the Caribe is at an inflection point and has unlimited growth potential, but faces many challenges.
The region, which extends over more than 20 million square kilometers (twice the size of the European Union), has demonstrated extraordinary resilience. A 2024, we reached the highest air traffic levels in our history, contributing to the 3.6% of the regional GDP and directly and indirectly generating 8.3 million jobs.
Strong momentum projected, with an increase in air traffic 7% for 2025, This and much more has been reviewed during editing 21 of the ALTA AGM & Airline Leaders Forum that develops in Lima.
Latin America can grow unlimitedly
Although traffic in the region has tripled in recent 25 years, per capita travel rate remains disappointing, which shows practically unlimited growth potential.
- Tasa Regional (LAC): On 2024, the Latin American and Caribbean region (LAC) reached 0.67 trips per year per inhabitant, surpassing the 0.49 from 2014.
- Global Comparison: This contrasts sharply with the 2.56 North America travel 2024 or almost 5 travel in europe.
The detail of Trips per Capita in 2024 by country illustrates this low penetration and untapped potential:
- Panama: 1.34 (compared to 1.04 on 2014)
- Dominican Republic: 1.69 (compared to 1.05 on 2014)
- Chile: 1.28 (compared to 0.85 on 2014)
- Colombia: 0.95 (compared to 0.58 on 2014)
- Mexico: 0.83 (compared to 0.5 on 2014)
- Peru: 0.67 (compared to 0.47 on 2014)
- Argentina: 0.6 (compared to 0.47 on 2014)
- Bolivia: 0.45 (compared to 0.41 on 2014)
- Brazil: 0.48 (no change since 2014)
- Ecuador: 0.47 (no change since 2014)
The middle class is growing, and for her aviation is a vital necessity (near 3 decade 10 Passengers in key markets flew for the first time). Nevertheless, countries like Brazil and Ecuador show stagnation in their rates, underscoring that regulatory and cost barriers impede growth.
Aviation does not only move passengers
Aviation is a pillar of shared prosperity, that generates wealth and progress to the cities where this operation takes place:
- Current Economic Impact: contributed 240 billion dollars to GDP in 2024.
- Projection to 2033: This figure is expected to rise to 500 billion dollars and 15 million jobs.
Air cargo is essential, allowing the export of high-value perishable products in a matter of hours. The region's main export products include:
- Flores: More of 1,000 tons annually from Colombia and Ecuador.
- Seafood: 188,000 tons from Chile and Ecuador.
- Asparagus and Mangoes: 57,000 tons from Peru.
Challenges for the sector
This growth is undermined by public policies and costs that put airlines to the limit.:
- High Costs and Low Margins: Airline margins are very low, only 40 cents per passenger flown.
- The Most Expensive Region in the World: Latin America remains the most expensive region in the world in taxes and fees per passenger.
- Rates like the one proposed in Peru and high taxes directly affect competitiveness.
- Unrealistic Regulatory Mandates: Sustainable Aviation Fuel Regulations (PURE) in Brazil they are difficult to implement, given that today not a drop of SAF is produced in the region. Worldwide, the expected production of SAF for 2025 is less than 1% of total demand.
- Congestion: More than half of our flights operate at congested airports.
Collaboration and certainty
The overall goal, backed by the OACI, is to achieve net zero carbon emissions to 2050 and guarantee air connectivity for all. To make it, the industry needs:
- Regulatory Clarity and Certainty: The law must be predictable and regulatory frameworks must be stable and intelligent.
- Fair Investment: Aviation is an investment, not a source of easy tax revenue. Governments must prioritize the long-term strategic value that aviation brings.
Success will depend on continuous collaboration between airlines, HIGH, ICAO and governments of the region. Only then will we unleash ALTA's vast potential to connect people and move economies..
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