According to a statement from the International Air Transport Association (IATA) Latin American carriers are the only ones in the world to close 2009 with profitable operations, accumulating a collective gain of around US$100 billion.

“These results are mainly due to the relative strength experienced by South American economies and efficiency gains through structures of regional airlines.”

The report also points out that other airlines around the world face a challenging 2010, with losses that could reach US$ 5,600 million, despite some recovery in both passengers and cargo.

Latin American countries are better connected now than ever before, intra-Latin American demand is growing, and competition is on the rise too.

LAN Airlines has recently signed a purchase order for 30 aircraft from the Airbus A320 family. Their new route BUE-LIM-SFO will begin operation in June 2010. This will open up access to the U.S. West Coast – the main gateway to Asia from the Americas!

The travel press in the region have reported that LAN Airlines will be awarded 14 frequencies that allow flights from Brazil to destinations in the U.S. and Europe. This means that LAN will fly between Santiago and the U.S. with traffic rights in Brazil.

Several additional factors point to a renaissance in the Latin American Air sector. This week LAN and TAM expanded their regional agreement. Last year, Copa Airlines ordered 15 Next-Generation 737s. And the Avianca/TACA merger (or strategic joint service cooperation) could be the birth of the largest airline in Latin America!

All of this makes one rethink the future of air travel in the region and reaffirms the opportunity for development, economic growth and social development of countries in the region.

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