Air traffic in Latin America and the Caribbean returns to pre-pandemic levels

17-02-23

In 2022, December was the month in which the Latin America and Caribbean region carried the highest number of passengers with a total of 32.3 million, a figure that corresponds to 99.9% of passengers compared to the same month in 2019 and represents an advance compared to the immediately preceding month when the region reached 97% of its 2019 levels.

In addition. LAC remained the world's fastest recovering region, ahead of North America at 92% of its 2019 levels, the Middle East at 95%, Europe at 83%, Africa at 90% and South East Asia at 78%.

This is the second time the region has reached its pre-pandemic levels, as in September 2022 the region reached 101% of its 2019 levels. On the other hand, nearly 330.5 million passengers were carried in the region last year and, cumulatively, the region consolidated at 9% below its 2019 levels.

In terms of international passenger traffic, the Dominican Republic, Colombia and Mexico continue to stand out with very positive growth rates: 17%, 14% and 6%, respectively. Brazil, Chile and Argentina experienced a slowdown compared to the previous month, with 78%, 84% and 71% respectively. In November, Peru reached 71% of its 2019 levels. 

Domestic transport, on the other hand, has recovered at a faster pace. In this area, Colombia and Mexico lead the region. In December, Colombia grew 12% and Mexico 15% above its pre-pandemic levels. Argentina was at 96%, Brazil 87% and Chile 89% of its 2019 levels. Similarly, according to November 2022 data, Peru showed a slowdown, reaching a domestic recovery of 94%.

For the whole of 2022, Mexico carried 106.9 million domestic passengers (+5% compared to 2019), Colombia carried 47.9 million domestic passengers (+16%), Dominican Republic 15.5 million (+8%), Brazil 97.6 million (81.9%), Chile 20.3 million (78%) and Argentina 21.5 million (70.5%).

Regional domestic traffic grew 1.2% above its 2019 levels, extra-LAC international traffic grew 0.8%, while intra-LAC traffic has been recovering more slowly, reaching 7.4% below its 2019 levels.

Air transport uses local inputs, impacted by inflation in each country. Fuel prices remain historically high. On 23 January 2023, the price of jet fuel was 183% above its January 2021% levels.

The differential between the price of a barrel of oil and fuel has increased, whereas in January 2021 the price of jet fuel was 14% higher than the price of oil, today the price differential is 49%. Fuel now accounts for 50% of an airline's cost structure compared to Q1 2022 where it was 36% and the increase has been such that a year earlier it accounted for 20% of operational costs.