Latin America Air Freight Industry Market Size

Latin America Air Freight Carriers 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 an increase in 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. Economic instability coupled with widely divergent travel restrictions, newly imposed taxes, and a lack of government financial aid was to make for a rather uneven recovery from the downturn driven by the COVID-19 pandemic.
• As per the data released by the International Air Transport Association (IATA), in August 2022, the region had a 9.0% increase in freight volumes for airlines compared to August 2021. Among other regions, 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. When compared to August 2021, capacity has increased by 24.3%.
• Unlike other rivals who are still feeling the consequences of Russia's war in Ukraine and the lifting of strict Chinese lockdowns, American Airlines saw an increase in revenue in May of this year. Latin American carriers outperformed all other regions in May, outperforming the general declining trend with a rise in cargo volumes of 13.8%. According to IATA, "Airlines in this region have demonstrated optimism by launching new routes and capacity, and in certain cases investing in more aircraft for air cargo in the coming months." When compared to 2021, the region's capacity increased by 33.3% in May.
• The air freight sector is currently experiencing a number of difficulties, including planes being grounded, routes being cut, and a drop in demand. Compared to the pandemic era, certain global air freight corporations are indicating a slackened demand.
• 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. Simply expressed, due to a number of circumstances, air freight companies anticipate a subdued fourth quarter in 2022. These include the broken supply chain, the protracted war, the slowdown of the world economy, and the possibility of a worldwide recession.