Latin America is the world’s most expensive region in terms of passenger taxes and fees. Airline executives at the ALTA Forum in Lima called on governments and regulators to reduce financial burdens.
Latin America has become the world’s highest-cost region for flights in terms of taxes and additional fees per passenger. Airlines have called on governments for reform, warning that rising taxes and inadequate infrastructure threaten the regional aviation sector.
Speaking at this week’s ALTA (Latin American and Caribbean Air Transport Association) General Assembly and Airline Leaders Forum in Lima, Peru, new ALTA CEO Peter Cerdá outlined the main challenges facing airlines in the region:
- High tax rates,
- Airports with limited capacity,
- Weak regional connectivity, and Low profit margins.
Cerdá stated, “Up to two-thirds of the price of an airline ticket can be made up of taxes and fees. This is unsustainable. Overregulation does not provide protection; it hinders growth.”
According to ALTA data, average taxes and fees per passenger in Latin America are $44, representing 29% of the total ticket cost. This compares to $22 (17%) in the Asia-Pacific region and $34 (15%) in North America.
Avianca CEO Frederico Pedreira said on the panel, “This is absurd. Two-thirds of the ticket price comes from taxes and fees. If you want more people to fly, you shouldn’t burden them with extra costs.”
LATAM Group CEO Roberto Alvo added, “Regional policies are thought out short-term. We want growth, but under these conditions, how much can we really grow?”
JetSMART CEO Estuardo Ortiz, based in Chile, said, “Connectivity strengthens the economy. But passengers are crushed under the tax burden. A full reform of aviation is necessary.”
Despite these challenges, Cerdá highlighted the resilience of Latin American aviation, noting that 194 new routes have been launched since October 2024 and unique airport pairs have increased by 70%. Argentina, Brazil, Colombia, Mexico, and Panama have become the main drivers of regional growth.
However, airline executives also reported that engine failures and delays in aircraft deliveries threaten operational efficiency. LATAM CEO Alvo called on manufacturers for greater accountability: “We want to know if the aircraft we buy will actually fly, just as we care about fuel efficiency and safety.”
Ortiz added, “Engine manufacturers were overly optimistic. The lifespan of turbines is shorter than expected. This is a long-term problem.”
Latin American aviation is expected to maintain its growth momentum in 2025, continuing its recovery despite high costs and infrastructure limitations.
