Brazil, Chile and Mexico are the only Latin American nations so far where airlines have cut services as a result of 11 September.
At an extraordinary session of the Association of International Latin American Airlines in Miami, executives from major carriers met to assess the impact of the terrorist attacks. They estimated that 18,000 jobs could be lost as a result of falling traffic and soaring insurance costs.
Yet, immediate cuts are more limited. Mexican carriers have been hardest hit. Aeromexico and Mexicana have trimmed capacity by 10% in the face of a 25% drop in traffic.
Routes to the USA have suffered most - a pattern seen in much of Latin America. Cintra's sale is also likely to be postponed as airline stocks around the world have fallen.
In Brazil, TAM suspended its Sïo Paulo-Miami non-stop service, but plans to revive it for the December rush. Varig has not declared any US cuts so far, but has shelved a new Rio de Janeiro-New York and a second weekly Manaus-Miami service. The carrier plans to ground 15 aircraft and suspend 13 routes throughout its network. Some of those could be to the USA.
LanChile has reduced flights to New York. Director general Luis Ernesto Videla said: "In comparison to what is occurring in the rest of the world, LanChile is only suffering a minor impact. But this is certainly a globalised industry and whatever happens in the USA also has consequences for our company."
But several carriers are bucking the trend. Venezuela's Aserca and Argentina's Southern Winds hope to launch US flights before year-end. Mexico's Avianca and Venezuelan carrier Aeropostal also plan to add US flights.
Yet, it is by no means certain that the effects of the crisis on the region will not worsen and become more widespread.
In a part of the world where aftershocks are sometimes worse than initial ones, Latin executives are still worried about the longer term.
Source: Airline Business
