Though Brazil’s economic woes tend to overshadow much of South America, not all the region’s countries are in such extreme economic doldrums.
Some countries’ economies are growing at “healthy rates”, and the region’s airlines should, cumulatively, be profitable in 2016, says Peter Cerda, vice-president of the Americas for the International Air Transport Association
Cerda, who made his comments during the first day of the Routes Americas conference, notes that Latin American airlines cumulatively lost about $300 million in 2015.
But he notes that economies of countries like Chile, Peru, Colombia and Mexico are projected to grow 3-5% annually for five years, while the economy of Panama – the standout in the region – is forecast to grow 6.4% annually in that period.
By comparison, Brazil’s economy is forecast to grow at just 1.7% annually for five years, notes Cerda.
Eduardo Iglesias, executive director of ALTA, says Latin America’s economic situation is split down clear lines.
“We have seen, in the last year, the Pacific Rim, from Mexico to Chile, growing at a steady pace, while the Brazil side and Venezuela [are] falling off the wagon,” he says.
Source: Cirium Dashboard
