In the first quarter of the year, interest in air travel increased in all Central American markets, a rise that was most evident in Honduras and Guatemala.
Through a system that monitors in real time changes in consumer interests and preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
As of March 28th, the Colombian airline will begin to reactivate flight routes connecting Central American countries with North American and South American nations.
After several months without arriving in the country due to the covid-19 outbreak, Copa Airlines will resume flights to Managua starting January 20 and will do so on a weekly basis.
The plans of the Panamanian airline is to operate during January a weekly frequency on Wednesdays, informed Carlos Schütze, vice president of the National Chamber of Tourism of Nicaragua (Canatur).
In Central American countries, nearly 8 million people are looking for travel packages online, and of this consumer segment, about 5% explore options for travel to destinations in North America.
CentralAmericaData's interactive information system monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the current commercial environment in which companies of all industries must operate.
In the context of the economic reopening, it was announced that as of October 15, Costa Rican air terminals will begin to receive flights carrying citizens from Central America and Panama.
Due to the covid-19 outbreak, air transport between Costa Rica and the other countries in the region has been interrupted since March.
The constant resurgence of covid-19, the closure of international markets and the loss of consumer confidence, postpone the beginning of the recovery of the air industry, a process that is predicted to be long in the context of the new business reality.
According to the International Air Transport Association (IATA), in this context of business and economic crisis in a large number of countries at the global level, there is no evidence of strong growth in global demand for cargo and its progress continues to be an extraordinary challenge for airlines.
Restructuring of airlines, preference for direct flights, modifications in the routes operated and the use of smaller aircraft are some of the changes expected in the regional air market in the context of the new business normality.
Air traffic has virtually disappeared in the last three months, as governments in Central America have decided to close borders and suspend commercial flights to and from the region's airports as a result of the covid-19 outbreak.
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.
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.
Nicaragua suffers from lack of air connectivity and from inflated prices to be paid to fly to Managua from nearby cities.
With only five direct air links, Nicaragua is, along with Honduras, the destination with the highest prices of airline tickets, ranging from $460 to $2117, for only one-way trip within the region. In addition, Nicaragua also receives the least amount of airlines, currenly only 7 companies are available.
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