Mexico, a leader in the recovery of Latin American’s airline industry
The consulting firm OAG predicts that the Latin American airline industry will have a reduction in the recovery of its capacity within the next few weeks, as a result of the COVID-19 pandemic, as well as the second and third waves that have resulted in new requirements for quarantine in various countries.
For the first week of the year, the OAG noted that South America had the best capacity recovery, with a weekly increase of 12% in the number of seats available in the market. However, “we have noticed that Latin America has been, on average, six weeks behind the impact curve of covid-19 in other markets, and this growth could be reduced in the coming weeks after several countries reintroduced quarantine requirements to the arrival of passengers in the last week ”, stated the OAG.
Despite the fact that Latin America started with the best capacity recovery worldwide, this does not mean that the region has the closest capacity levels to those registered in January 2020, prior to the outbreak of the COVID-19 pandemic worldwide.
On the contrary, Latin America continues with a drop in capacity of more than 40%, according to OAG statistics.
In this sense, Mexico continues as a leader in the recovery of the Latin American airline industry. For the first week of January, the country was 22.4% below the capacity registered at the beginning of 2020.
The Mexican recovery, however, is facing a period of stagnation, derived from the fact that the first three months of the year are, historically, the low season for airlines in the country. This was reflected by a 0.2% drop in the number of seats available between the week of December 28, 2020 and January 4, 2021, OAG noted.
Brazil, the most important country in terms of capacity in Latin America, is 30.7% below its January 2020 levels.