What to Expect for Air Transport in Latin America in 2025, According to IATA?

The International Air Transport Association (IATA) has projected a promising future for the air transport industry in Latin America. According to its annual report presented in Geneva, the region is expected to achieve net profits of $1 billion in 2024 and $1.3 billion in 2025, despite facing significant challenges in some key markets.

What to Expect for Air Transport in 2025

Sustained Growth, Though Below the Global Average

Image: El Universal

Profit margins in Latin America are estimated at 2.1% for 2024 and 2.4% for 2025, slightly below the global average of 3.6%. These figures highlight moderate yet steady growth driven by post-pandemic recovery.

Despite this progress, the region remains one of the lowest in terms of profit per passenger worldwide. Revenues per passenger are expected to reach $3.2 in 2024 and $3.8 in 2025—positive figures, but still below the global averages of $6.4 in 2024 and $7 in 2025.

Factors Limiting Growth in the Region

Image: Semana

IATA identified several challenges affecting the air transport sector in Latin America:

• Currency depreciation: Countries with high air traffic activity face economic fluctuations that impact net revenue.
• Rising operational costs: Fleet maintenance and debt payments have created financial pressure on airlines.

Positive Results Amid Negative Forecasts

In 2023, IATA had predicted continued losses for Latin America. However, these forecasts did not materialize. Instead, the region achieved net profits of $200 million that year, demonstrating resilience that surprised the industry.

Comparison with Other Regions

Image: Motor1

Globally, Latin America still lags behind the profits other regions are expected to achieve in the coming years:

• North America: The leader in profitability, with projected profits of $11.8 billion in 2024 and $13.8 billion in 2025.
• Europe: Expected to reach $10 billion in 2024 and $11.9 billion in 2025, despite challenges such as wage increases and environmental restrictions.
• Middle East: Anticipating profit margins of 7.7% in 2024 and 8.2% in 2025, achieving the highest revenue per passenger (over $20).
• Asia-Pacific: The Region with the Highest Growth
  While profit margins are lower, Asia-Pacific is expected to experience the highest growth in air transport demand, with an estimated 11% increase by 2025, surpassing the global average of 8%.

On the Path to Recovery

Air transport in Latin America is in a recovery phase, with positive expectations for the coming years. Despite economic constraints, the projected growth reflects the sector’s commitment to innovation and resilience.

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