Latin America Air Freight Industry Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.04 Billion |
| Market Size (2029) | USD 1.28 Billion |
| CAGR (2024 - 2029) | 4.22 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Air Freight Industry Market Analysis
The Latin America Air Freight Industry is expected to grow from USD 1.04 billion in 2024 to USD 1.28 billion by 2029, at a CAGR of 4.22% during the forecast period (2024-2029).
The air trade in Latin America is growing with increased capacity addition and demand for fresh Latin American perishable goods across the globe. However, the archaic regulations and slow growth in infrastructure are hindering the continent from realizing its full potential.
As per the industry experts, in August 2022, the region had a 9.0% increase in freight volumes for airlines compared to August 2021. Among other areas, Latin America witnessed a significant growth rate. The growth is mainly attributed to the offering of new routes and capacity. The region is also expected to invest more in aircraft for air cargo in the upcoming months. The capacity increased by 24.3%.
The most robust year-on-year performance was achieved by Latin American carriers, with a 2.0% increase in demand for international operations between 2022 and 2023 compared to +1.9%. Capacity also significantly increased by 13.2% (+16.9% for international operations).
The air freight sector is experiencing several difficulties, including planes being grounded, routes being cut, and a drop in demand. Certain global air freight corporations indicate a slackened demand compared to the pandemic.
In contrast to the booming consumer demand that characterized the preceding two years, the air freight sector is currently facing a decline in customer demand, notwithstanding the time of year. Due to several circumstances, air freight companies anticipate a subdued fourth quarter in 2022. These included the broken supply chain, the protracted war, the slowdown of the world economy, and the possibility of a worldwide recession.
Latin America Air Freight Industry Market Trends
Growth of E-commerce Increases The Transport Service
As per industry experts, cross-border e-commerce is one of the significant opportunities for logistics providers due to the lower density of physical retail space, limited product availability, high penetration of smartphones, and purchase savings throughout the region. The industry continuously innovates to leverage the latest technologies and develop fraud protection solutions and authentication technologies that allow vital players, merchants, and banks to identify online shoppers by leveraging solutions such as biometric data for identity authentication. Several factors are behind this growth, the most important being the large numbers of millennials making purchases and the massive proliferation of smartphones.
In Latin America, social commerce is starting to overtake e-commerce. More than half of the Latin American shoppers polled in Brazil, Colombia, and Mexico engaged in social commerce. Comparing social commerce to traditional e-commerce, such as official corporate websites or marketplace websites like Amazon, Rappi, or MercadoLibre, the latter is gaining ground in Latin America.
More than 40% of customers from Brazil, Colombia, and Mexico cited the increased selection of payment options as a critical advantage of social commerce, as per experts. Nearly one-third of social commerce transactions in Argentina, Colombia, and Mexico involved currency coupons from convenience stores. It demonstrates that, besides relying on bank transfers, cards, and PayPal, even tech-savvy social media users favor cash as their preferred payment option. In 2023, compared to September 2022, the cargo volume increased by 2.3% for South American carriers. Compared to the previous month, this was a significant decrease in performance by 6.2%. In September 2023, capacity increased by 14.4% compared with the corresponding month in 2022.
Brazil Evolving As An Important Market For The Growth In The Air Freight Industry
Brazil's assistance of air cargo through its customs and border regulations ranked 52nd in the E-freight Friendliness Index (EFFI) globally in 2022. The air cargo transportation market has grown considerably in the country due to its various benefits, such as incredible speed and safety in the movement of products inside and outside the country.
The United States is Brazil's second-largest trading partner due to a solid commercial relationship and a commitment to joint prosperity. The complexity of domestic legislation and tax rules frequently makes it difficult for exporters despite the high local demand for U.S. brands and products. To achieve export success in Brazil, it is therefore essential to have an in-depth knowledge of local market trends and regulations. Brazil exported goods worth USD 39,122 million and imported goods worth USD 44,808 million in 2023 from the US.
One of the critical advantages of air freight is its dependability. Even though weather conditions can affect flight schedules, the availability of daily flights makes it simple to board the following trip. Consolidating shipments might be assisted by a knowledgeable air freight forwarding business. Combining airport terminal pickup, customs brokerage, cargo delivery, and affordable air carrier rates can help simplify logistics administration. Vendors can then concentrate more on expedited shipping in this fashion.
Latin America Air Freight Industry Industry Overview
The Latin American air freight industry is moderately fragmented. However, the industry is dominated by major players like FedEx, UPS, Emirates, and many more. The growing demand for air freight transportation services has opened new challenges for air cargo service providers. E-commerce also pushes air cargo toward greater visibility and transparency throughout the supply chain, with Brazil being the most significant market. Companies like Azul focus on expanding their presence in the country via collaborations and partnerships with e-retailers like Amazon.
Latin America Air Freight Industry Market Leaders
FedEx
UPS
Emirates Skycargo
Aeromexico
Cargolux
*Disclaimer: Major Players sorted in no particular order
Latin America Air Freight Industry Market News
January 2024: SASI Word Inc., a global aviation consultancy in the field of air cargo logistics, has signed an agreement with Airmann Inc., located in Santiago de Chile, to launch its air cargo logistics advisory and training programs across Latin America, With offices strategically located in the United States, the United Arab Emirates, and Santiago de Chile, SASI World is based in Canada.
December 2023: DP World is building its end-to-end supply chain ambitions by launching its first cargo logistics hub. The 10,00 sq. m air cargo facility boasts features including a logistics center with warehouse and manufacturing facilities, a fuel supply terminal, and the existing warehouse.
Latin America Air Freight Industry Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Method
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Market Overview
4.3 Market Dynamics
4.3.1 Drivers
4.3.1.1 Extension of new air routes and capacity
4.3.1.2 Constant Need to Transport Temperature-Sensitive Products
4.3.2 Restraints
4.3.2.1 Market Uncertainty
4.3.3 Opportunities
4.3.3.1 Implementation of Several Software Solutions
4.4 Value Chain / Supply Chain Analysis
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Government Regulations and Initiatives
4.7 Supply Chain/Value Chain Analysis
4.8 Technology Snapshot and Digital Trends
4.9 Spotlight on Key Commodities Transported by Air
4.10 Elaboration on Air Freight Rates
4.11 Insights into Key Ground Handling Equipment in Airports
4.12 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
4.13 Brief on Cold Chain Logistics in the Air Cargo Sector
4.14 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Services
5.1.1 Transport
5.1.2 Forwarding
5.1.3 Other Services
5.2 By Destination
5.2.1 Domestic
5.2.2 International
5.3 By Carrier Type
5.3.1 Belly Cargo
5.3.2 Freighter
5.4 By Country
5.4.1 Brazil
5.4.2 Mexico
5.4.3 Argentina
5.4.4 Colombia
5.4.5 Rest of Latin America
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 FedEx (Federal Express)
6.2.2 United Parcel Service
6.2.3 Emirates Skycargo
6.2.4 Aeromexico
6.2.5 Cargolux
6.2.6 LATAM Cargo
6.2.7 Qatar Airways
6.2.8 Azul Cargo Express
6.2.9 Kuehne + Nagel
6.2.10 IAG Cargo
6.2.11 Avianca Cargo
6.2.12 DHL
6.2.13 United Airlines
6.2.14 American Airlines
6.2.15 Delta Airlines
6.2.16 Copa Airlines*
- *List Not Exhaustive
6.3 Other Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
Latin America Air Freight Industry Industry Segmentation
The airfreight or air cargo market covers the carriage or transportation of goods by air in overseas and local markets. A complete background analysis of Latin America's air freight industry, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
Latin America's air freight industry is segmented by services (transport, forwarding, and other services), destinations (domestic and international), carrier type (belly cargo and freighter), and country (Brazil, Mexico, Argentina, Colombia, and the Rest of Latin America). The report offers market size and forecasts for all the above segments in value (USD).
| By Services | |
| Transport | |
| Forwarding | |
| Other Services |
| By Destination | |
| Domestic | |
| International |
| By Carrier Type | |
| Belly Cargo | |
| Freighter |
| By Country | |
| Brazil | |
| Mexico | |
| Argentina | |
| Colombia | |
| Rest of Latin America |
Latin America Air Freight Industry Market Research FAQs
How big is the Latin America Air Freight Industry?
The Latin America Air Freight Industry size is expected to reach USD 1.04 billion in 2024 and grow at a CAGR of 4.22% to reach USD 1.28 billion by 2029.
What is the current Latin America Air Freight Industry size?
In 2024, the Latin America Air Freight Industry size is expected to reach USD 1.04 billion.
Who are the key players in Latin America Air Freight Industry?
FedEx, UPS, Emirates Skycargo, Aeromexico and Cargolux are the major companies operating in the Latin America Air Freight Industry.
What years does this Latin America Air Freight Industry cover, and what was the market size in 2023?
In 2023, the Latin America Air Freight Industry size was estimated at USD 1.00 billion. The report covers the Latin America Air Freight Industry historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Air Freight Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Air Freight Industry Industry Report
Statistics for the 2024 Latin America Air Freight Carriers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Air Freight Carriers analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
