The promising aviation panoramas of Argentina and Brazil

A few weeks ago I was in South America presenting the Latin America Global Market Forecast, our long-term aviation market outlook. It was a timely of us to be in the region to discuss evolving market dynamics and increasing passenger demand in the region, and how it will drive Latin America’s fleet to more than double in the next 20 years. It was timely to be in Argentina and Brazil in particular, given that both of these aviation markets are in the midst of critical moments which will shape their aviation futures.

Let me begin with Argentina. The rise of LCCs in Latin America is a trend that did not bypass Argentina, where new LCCs and startups such as Andes, Avian, Alas del Sur and FlyBondi have turned the country into a hotbed for new players in the regional traffic market. These new players will shake up the dynamics of domestic travel, a market in which traffic has increased by 65 percent in the last five years alone. We predict this traffic will keep growing by four percent per year in the next 20 years, presenting a viable opportunity for both new and existing carriers to expand and develop their routes accordingly.

In Brazil it is no secret that the country’s current political and economic circumstances have been temperamental, but we see recovery on the horizon. In the next 20 years we predict a Brazil’s traffic growth to increase at a rate above the region’s and world’s averages, by almost five percent annually. Signs of revitalization are already evident, in fact, with domestic air transport seeing its first signs of growth in March after 19 months of domestic market contraction, experiencing a six percent increase in both revenue passenger kilometers and passengers compared to the same time last year, per ABEAR. Another positive sign heralding the rebirth of Brazil’s travel market is Emirates starting its A380 operations in Sao Paulo.

Argentina and Brazil are just two exemplars of the driving forces behind Latin America’s evolving footprint in the world’s aviation landscape. How do I see the future? Solid, fast-growing, and bright… if you ask me.

Rafael Alonso is President of Airbus Latin America and Caribbean. With more than three decades in aviation, Rafael has spent most of his career promoting the industry, its evolution and influence throughout Latin America and the Caribbean.