Rapid traffic growth
Air traffic growth rates for Latin American carriers are among the highest in the world. In South America, economic growth of 3.9 percent per year will drive air traffic to grow 7 percent per year for the next 20 years. In Central America, 3.6 percent economic growth will drive 5.6 percent annual growth in air traffic.
Prosperous operations
Latin America is home to some of the most profitable airlines in the world. Many carriers in the region have worked hard in recent years to improve their product offerings, their brand and their quality of service. Latin American carriers are also enhancing their fleets with new and efficient airplanes, having placed more than twice as many new airplane orders in the past four years as in the previous 10 years. Many of these recent orders have been in the twin-aisle category for use in international markets. Since the beginning of 2006, Latin American airlines have ordered approximately 115 twin-aisle airplanes, which is nearly one-quarter of the total airplanes ordered in the region.
Potential for market expansion
Growing fleets of new aircraft are providing the region's carriers with economies of scale and increased ability to expand route networks. These are important factors that will help Latin American airlines compete with their international counterparts, which provide the majority of service in and out of the region. Only 19 percent of traffic to Europe and 26 percent of traffic to North America is currently carried by Latin American airlines. Although tourism has driven a significant increase in air travel between Europe and Latin America, nearly all of the traffic added since 2005 has been aboard European airlines. Latin American airlines have reduced their capacity on these routes.
Economics and demographics suggest significant potential for air travel growth. Brazil, with its population of nearly 200 million, is the largest country in the region and fifth largest in the world, behind China, India, the United States and Indonesia.
