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Wednesday, April 17, 2024

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IATA sees significant growth in low-cost flights in Latin America

The International Air Transport Association (IATA) anticipates a significant increase in low-cost, long-distance and interregional flights in Latin America, so Level, the low cost of IAG, flying to Argentina and Punta Cana, is received With “very much interest”.

In Latin America, there is a great interest in this segment especially in countries such as Chile or Argentina, where last year was born the new company flybondi and, at the end of the present, plans to start operations Scandinavian Norwegian, which, on the other hand, competes With Level at the Barcelona airport, although for the time being on flights to the USA.

Despite this competition, IATA Regional Vice President for the Americas, Peter Cerdá, is convinced that if the market demands it, there is room for even more companies, which are going to operate in different markets.

“If there is an appetite and a need,” he added on the eve of the inauguration of the 73rd IAG assembly.

The air transport sector in Latin America is changing, which will give new opportunities to travel to more people and stimulate the economy of many countries, but it is necessary to improve infrastructures and to apply intelligent regulation.

Passenger traffic is estimated to double by 2034 in Latin America and the contribution of the air transport industry to regional GDP could increase from $ 140 billion to $ 322 billion, Has recalled.

Cerdá has assured that the industry is on the path to reach that growth in a sustainable way, since the Latin American population wants and needs to travel inside and outside its continent, but, unfortunately, the governments of the region “stop sustainable growth with their Infrastructures deficit and debilitating regulation “.

The executive has warned that many of the region’s main airports do not have the capacity to absorb the high demand such as that of Jorge Chávez, in Lima, designed to serve 10 million passengers a year, and now receives 17 million.

Mexico City, one of the main hubs of the region, is also limited by an outdated infrastructure, which can only add new flights at night, while the new airport will not be a reality until a few years.

In Argentina, the problem is the air traffic management in Buenos Aires and its surroundings that undermines the competitiveness of the airlines and causes delays and longer flights.

Regarding regulation, Brazil’s fuel policy increases airline costs by 660 million dollars (587 million euros) annually, and there are rules that punish them for delays and cancellations, even for reasons beyond the company’s own.

Something similar happens in Mexico, with compensation for delays and free billing of luggage on domestic flights.

If Latin America does not urgently address its infrastructure problems, it could stop earning about 42,000 million dollars (€ 37,291 million) in 2034, he warned.

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