The Centre for Aviation (CAPA) Latin America will commence a two-day Aviation and Low-Cost Carriers (LCCs) summit today in Salvador, Brazil.
The summit will bring together regional and international aviation bodies, industry experts, regulators and political leaders to discuss the future of the aviation industry in Latin America. The event will focus on regional airline partnerships, “green” aviation and the prospect for new entrants into the market after the pandemic.
The COVID-19 pandemic significantly impacted the aviation environment in Latin America. The industry is experiencing fast growth of LCCs, the collapse of inefficient airlines, airlines adopting bankruptcy restructuring mechanisms and the rise of alliances with regional and worldwide carriers. 2022 passenger numbers in Latin America will reach 94% of 2019 levels and a full recovery is expected in 2023, ahead of all other regions.
Expect the summit to result in participants sharing new data on the growth of LCCs and an acknowledgment to support the transition to a low-carbon economy. In the short-term, the aviation sector in Latin America is likely to continue along is growth trajectory followed by a long-term decrease in the costs of travel as LCCs rise to dominate the industry.
Riley is an Analyst and a regular contributor to the Daily Brief, he focuses on security issues in Europe and the Middle East/North Africa.