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.
The Panamanian airline has presented a financial offer in cash and stock to acquire the second largest airline in the region after Latam Airlines.
The New York Times reported that the offer made by Copa Airlines consists of "... a merger that would value Avianca at more than $2 billion, or a 150 percent premium to its share price last week. [November 29]".
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.
The stock price of Copa Holdings has fallen and at the same time the airline has stopped accepting Argentina's currency for ticket sales.
Restrictions in Argentina for converting local currency to dollars and for sending funds abroad, have now forced American Airlines and Air Canada to take the same measure implemented by Copa.
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.
Central American countries need to grant each other complete air freedom, with unrestricted frequencies and multiple designations.
A study of the conditions of competition in air transport for passengers in El Salvador, prepared by the Superintendency of Competition in the country, contains relevant definitions for optimization of air transport not only for El Salvador, but also all other Central countries.
Starting next December the airline will start flights between Tampa International Airport, Florida, and Tocumen in Panama.
The new route will link passengers from Tampa with Central American countries and those in South America, through Copa's hub in Panama.
No details have been released about the flight, to verify if Copa Airlines will use a Boeing 737 aircraft. The duration of the flight will be approximately two and a half hours.
Thank you Interjet and Aeromexico for making it possible to buy a ticket without feeling like you have been robbed at gunpoint.
As was the case in other Central American countries with the opening of flights operated by companies outside of the isthmus, in Costa Rica, airline ticket prices for flights from San Jose to Mexico City have fallen by 60%.
The airline TACA will provide Central American passenger with some 26,000 seats at a lower price in order to promote tourism in the region.
The promotional packages include tickets, transportation, lodging, meals and tours for all countries on the isthmus, said Juan Carlos Ramos, president of the National Chamber of Tourism (Canatur) in Costa Rica.
At the moment detailed information is not available, but discounts will range up to 40% of the original value. Information will be available from Friday 20th April 2021 on the site www.descubrecentroamerica.com, reported Elfinancierocr.com.