Dear readers, in aviation in the month of February, once again, we saw a slowdown in the pace of recovery in Latin America and the Caribbean (LAC), reaching 98% of levels compared to 2019.
Some markets have sured pre-pandemic rates, but we are also facing great difficulties and avoiding further downturns in the coming months, especially in Colombia with the exit of two players from the market, where international engers in 2022 represented around 28% of the market.
The interruption of air operations in some countries in our region represents an alarming sign that the finances of companies are in a delicate situation.
These finances, already hit by the pandemic, face recurring challenges such as fuel prices, inflation, currency devaluation, among other factors.
It is urgent that governments across the region take a moment to sit down with the aviation industry and review the technical measures that will allow this essential sector to survive.
Ecuador is a great example of this. According to the Air Transport Competitiveness Index, developed by HIGH and Amadeus in 2022, the country ranked second as the least competitive in of taxes, tariffs and contributions.
As a result, the government of Ecuador spoke with the industry, analyzing the data together, and recently announced the change in the charging system for fees, which will positively impact the country, generating tourism, business, better rates for engers and a more democratized air transport.
In addition to the macroeconomic challenges, we have a more sustainable operational challenge. According to S&P Global Commodity data, as of March 20, 2023, the price of SAF was about 2,3 times more expensive than regular fuel. It is worth ing that the SAF represents more than 60% of the measures that will allow the industry to reach the goal of zero carbon emissions by 2050.
That is why, in March, we hosted a discussion forum in Costa Rica for fuel experts and government entities to come together and discuss how we are going to promote smart regulations that allow the production and distribution of SAF in aviation on a large scale.
Increasing the competitiveness of our countries is the healthiest and most successful way to overcome the obstacles we face. Engagement with government is now more important than ever. We are working daily on this task.
Thanks for reading!
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