July 25. The dollar’s relentless climb is bringing pain for holders of Latin American airline bonds.
Notes from the region’s carriers led losses in the sector over the past month as currencies from the Brazilian real to the Colombian peso got hammered, making it more expensive for locals to travel abroad and increasing the costs for airlines to service their debt. The weakness was enough to offset a modest drop in oil prices, which are still up almost 35% in the past year, and a surge in demand that has airports across the globe packed.
Source: Bloomberg
