Simple Flying - Daniel Martinez Garbuno
Despite having one of the most robust traffic recoveries globally after the COVID-19 pandemic, Latin American airlines are expected to record a net loss of about $1.4 billion in 2023. That’s the latest figure revealed today by the International Air Transport Association (IATA) during IATA’s Wings of Change celebrated in Mexico City.
Even before the pandemic, operating a profitable airline in Latin America & the Caribbean was complex. Carriers in the region regularly lost money, except for a few companies such as Copa Airlines.
...traffic growth is improving airlines' bottom lines across the region. On Tuesday, IATA’s regional vice president for the Americas, Peter Cerdá, said carriers in the region are expected to lose about $1.4 billion in 2023 or about $4.92 per passenger. Those numbers starkly contrast with IATA’s expected net revenue of $9.8 billion globally (or about $2.25 per passenger).
The North American carriers will have the best financial performance in 2023. IATA expects them to record a net profit of $11.5 billion. European airlines will profit $5.1 billion, and Middle Eastern carriers will get $2.0 billion. In contrast, African airlines will lose about $500 million, Latin American airlines $1.4 billion, and Asia-Pacific carriers $6.9 billion.