September 7. Similar to the carriers in other parts of the globe, airlines in Latin America were hard hit by shrinking air-travel demand in 2020. Consequently, air traffic declined to below sustainabile levels for Gol, Linhas Aereas Inteligentes, Azul and Copa (51.9%, 43.1% and 72.7% in 2020 Vs 2019). LATAM Airlines, a key airline for Chile and Brazil, had to file for bankruptcy protection in 2020.
Owing to ramped-up vaccination, economic activities are slowly picking up the pace, buoying consumer confidence. As an evidence, people are increasingly opting for air travel nowadays as fears of contracting the coronavirus receded with widespread vaccination programs in places like Brazil. This, in turn, led to an above 100% year-over-year surge in second-quarter 2021 total revenues at carriers like Gol Linhas and Azul.
Reflecting the improving COVID-19 scenario, primarily owing to the accelerated vaccination drives in Latin America, Spain recently announced that vaccinated travelers from six countries including South American nations, Brazil, Argentina, Bolivia and Colombia will no longer have to quarantine upon arrival.
Expecting air travel to Latin America to gain further momentum in the winter, the U.S. airline heavyweight United Airlines UAL intends to add flights to destinations in Latin America and the Caribbean.
Source: Reinsurance News