Little Competition in the Region's Air Market

Charges, taxes, high fuel prices and other costs at airport terminals can represent close to 30% of the value of air tickets in countries in the region.

Wednesday, September 26, 2018

Airlines that operate in the Latin American region face an uncompetitive market, since in 2018 these companies are projected to earn $2.95 per passenger, a figure much lower than the $15.67 estimated in North America or $7.58 in Europe, according to representatives of the International Air Transport Association (IATA).

In relation to the specific costs in Costa Rica, Nacion.com reports that in the country there is " ... an even higher cost for fuels, compared to the region. This item can represent another 10% of the final value of the ticket."

Peter Cerdá, vice president for the Americas of IATA, said that " ...In this aspect the Costa Rican situation is complicated for air transport companies, as there is no competition in the supply of fuels, in reference to the monopoly held by the Costa Rican Petroleum Refinery (Recope)."

Regarding figures on the Central American domestic market, the IATA details that 560 flights are currently offered per year, with 141 routes and 21,000 available seats. From the region to other areas of the world, 273 flights are offered, with 135 routes and 39,000 seats available each year.

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Airlines: Concern Over Rising Operating Costs

November 2019

Given the increase in port charges announced for 2020 and the high cost of aviation fuel, concern is growing among the airlines that use Costa Rica's Juan Santamaria airport.

According to a statement from the International Air Transport Association (IATA), Aeris, airport operator of the Juan Santamaria terminal, has confirmed that the rates will have a significant increase next year, because recent investments will be depreciated quickly to coincide with the expiration of the management contract in 2026.

More Low Cost Flights in Central America

November 2016

Volaris Costa Rica has announced that its company Fly Aviation has received an air operator certificate from the Civil Aviation authority and will start flying from December 1.

The airline expects to operate between 18 and 22 aircraft in the first three years, starting with flights from Costa Rica to other countries in the region. 

Welcome Competition and Low Prices

November 2016

In five years the airline market in Central America has transformed from being a market dominated by two major airlines, to one with new entrants, lower prices and greater connectivity.

The arrival of so called "low cost" airlines to the region has resulted in a progressive reduction in the prices of tickets to fly between Central American countries. Between 2011 and 2014 the average cost without taxes for travelling between Costa Rica and El Salvador ranged from between $400 and $500, while in 2015 it costs $391.

More Competition in Regional Aviation Market

December 2014

With the entry of two competitors focusing on the business of low-cost fares, the airline market in Central America is preparing for a potential price war.

Panama has become the starting point for tourists looking to travel to the rest of Central America, where new airlines want to capitalize on a market which so far has been driven Copa Airlines and Avianca.

 close (x)

Receive more news about Transportation

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Heavy Equipment: Reps Wanted

Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico.
The company manufactures and sells telescopic,...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Oct 28)
Brent Crude Oil
40.34
Coffee "C"
108.60
Gold
1,902
Silver
24.330