The airline Aliana announced the cancellation of flight routes from Guatemala to the United States and Tegucigalpa, and from the capital of El Salvador to destinations in North and South America.
Some routes from Bogota, Guatemala and San Salvador will be canceled consisting of fleet changes and focus on routes with higher demand, the airline said in a statement.
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.
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).
The Mexican company Volaris has announced that from June it will start operating two new frequencies, from El Salvador to Nicaragua and Guatemala, and another one between Mexico and Guatemala.
Volaris reported that the first route will connect Guatemala and El Salvador, and the second Nicaragua and El Salvador, and a third will go between Guatemala and Mexico.
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.
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.
Owners of VivaColombia and the mexican VivaAerobus have announced the opening of a holding company in Panama to start operations in Central and South America.
From a statement issued by Irelandia Aviation and Grupo IAMSA:
Irelandia Aviation and Grupo IAMSA, owners of the Mexican low-cost airline VivaAerobus and of the Colombian airline, VivaColombia, announced their intention to expand the Viva airline brand in Central and South America.
Starting July 2nd the number of frequencies to the South American country will be reduced from 48 to 10 per week and flights from New York, Dallas and San Juan, Puerto Rico will be canceled, keeping only the Miami - Caracas route.
The reason behind the decision of the U.S. airline is the $750 million that the Venezuelan government owes, as it does to other airlines in the world, such as Alitalia, Copa Airlines and Air Canada, among others.
The low-cost airline VivaColombia is looking at opening up routes to Central American countries.
During the inauguration of Routes Americas which was held in El Salvador, the head of tourism in the country, Jose Napoleon Duarte said they have begun talks with the low-cost airline VivaColombia, which has shown interest in opening routes to countries in Central America.
The Venezuelan state airline Conviasa is to start flying directly, starting in December, from Maiquetia airport to Tocumen and Augusto Sandino.
"On December 5 we will be flying from Maiquetia (the airport which serves Caracas) to Panama and on December 7 wewill be flying from Panama to Nicaragua," said Hebert Garcia, Minister of Water and Air Transport in Venezuela.
The Venezuelan airline has announced it will open a new route between Caracas and Managua with a stopover in Panama.
Hebert García, Venezuelan Minister of Water and Air Transport, said: "Conviasa should be a powerful airline nationally and internationally. We have to fulfill the plan we were left by Commander Hugo Chavez to make it the flagship airline of Venezuela ".