IATA expects Latin American airlines to lose $1.4b in 2023

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 $1.4b in 2023. That’s the latest figure revealed today by the 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. This year Latin American companies are expected to record traffic growth. Many countries will leave behind the COVID-19 pandemic, and there’s a boom in the ultra-low-cost segment, with companies such as Volaris, JetSMART, and Sky Airline becoming regional powerhouses. Nonetheless, this 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 $1.4b in 2023 or about $4.92 per passenger. Those numbers starkly contrast with IATA’s expected net revenue of $9.8b 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 $11.5b. European airlines will profit $5.1b, and Middle Eastern carriers will get $2.0b. In contrast, African airlines will lose about $500m, Latin American airlines $1.4b, and Asia-Pacific carriers $6.9b.<br/>