IATA expects air transport in Latin America to generate 1.3 billion in profits in 2025
Air transport in Latin America could achieve net profits of $1 billion in 2024 and these could rise to $1.3 billion next year despite challenges in many of its markets, the International Air Transport Association’s (IATA) annual report said Tuesday.
This would mean profit margins in the region of 2.1 % in 2024 and 2.4 % in 2025, below the global average (3.6 %), according to data presented at the annual IATA press day held at its headquarters, located in the heart of Geneva airport.
In Latin America, IATA analyzed, the sector has been constrained by currency depreciations in some countries with significant airline activity figures, as well as by the rising costs of fleet maintenance and debt payments.
As a result, in 2024 and 2025 the region will be one of the regions with the lowest profits per passenger (3.2 dollars in 2024 and 3.8 dollars in 2025), only above Africa and Asia Pacific and below the global average (6.4 dollars this year and 7 dollars next year), according to IATA data.
→ Avianca inaugurates flights to Panama City and São Paulo from Medellín
A year ago, IATA predicted that the Latin American airline industry would continue to make losses in both 2023 and 2024, following the trend of previous years marked by the pandemic, but in the end these pessimistic forecasts did not come true and even last year the region achieved slight net profits of $200 million, according to figures published last June.
The region where IATA expects higher profits this year and next is North America, with $11.8 billion in 2024 and $13.8 billion in 2025, while in Europe they would be respectively $10 billion and $11.9 billion.
Europe, analyzes the airline association, faces difficulties arising from wage increases, flight restrictions to reduce noise pollution or increased airport charges, among others.
This is compounded by the continuing war in Ukraine, where 20% of its airspace is closed while Russia’s cannot be used by many airlines due to sanctions, which lengthens routes between the Old Continent and Asia.
In the Middle East, IATA estimates net profits of $5.3 billion this year and $5.9 billion next year, with the region likely to achieve the highest profit margins of 7.7% and 8.2% respectively, exceeding $20 per passenger in both years.
Asia-Pacific, with estimated profits of US$3.2 billion and US$3.6 billion in 2025, could be the region where demand for air transport will grow the most in 2025, up to 11%, compared to the global average of 8%.
With information from EFE
Related Topics
Virgin Atlantic Resumes Course to Asia: New Route Between London and Seoul Starting March 2026
EVA Air to Connect Taipei with Dallas: New Direct Route Strengthens Its Presence in North America
Air France to Connect Paris with Phuket: New Non-Stop Flight Starting in November
Singapore Airlines to Renovate VIP Lounges at Changi Airport’s Terminal 2
Plataforma Informativa de Aviación Comercial líder en América Latina.