Latin America Aviation – State of the Industry 2022

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March 10. The beginning of the new year is the ideal vantage point from which to take stock of the past 12 months while giving us a chance to attempt to predict the future for Latin American aviation in 2022.

At the end of 2021, we saw Avianca exit its Chapter 11 process with a new shareholder structure, a more robust financial structure, and a major change in terms of its product and operations. The new business landscape will see the airline becoming more similar to the low-cost carrier (LCC) model, focusing on operational efficiency, increased seat capacity and a simpler, more basic price product.

These modifications in focus come as an attempt to compete with the new dynamic in the region, operating a smaller, more concentrated fleet with a greater range of point-to-point connections (not concentrating all their operation on El Dorado-Bogotá as it had done in the past) and using its wide body fleet (now with just one single B787), while also developing a stronger focus on freight.

Similarly, there were signs of progress by LATAM in its Chapter 11 process, by submitting a robust financial plan, greater simplification of the wide body fleet, a new, more aggressive focus on freight for the coming years (converting its previously passenger 767 fleet) and very good recovery of its operation in various markets, especially in Colombia.

Source: Aviation Pros.

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108290cookie-checkLatin America Aviation – State of the Industry 2022