Latin America Comes Back Strong

South America's Domestic Markets Propel the Region's Airlines to Recovery

Pushing Back: Inside The Issue

Again and again during the pandemic we have seen the power of domestic recoveries to propel airlines. Brazil, South America's largest market, is no different. Vaccination rates there are soaring, holidaygoers willing to explore at home with international limited by border restrictions, and pent-up demand palpable. Leisure travel propelled Azul, Gol and Latam Airlines Group's Brazilian subsidiary during the third quarter, and domestic demand — including rebounding business travel — is expected to fully recover this winter, or summer in the southern hemisphere. The has proven true in Colombia and other domestic markets in Latin America. However, for all the optimism, international travel remains a weak point for the region's carriers and is expected to stay down for some time to come.

Elsewhere, networks continue to change as airlines emerge from the pandemic. American Airlines is out of the Boston-New York LaGuardia shuttle market after 60 years, and United Airlines is dropping eight — or 11 depending on how you count — smaller markets though the move is about more than just pilots. And in Europe, the Lufthansa Group and Ryanair continue to face off with more routes from their bases, old and new. But all these moves reminds us that one thing didn't die with the pandemic: healthy competition.

The Airline Weekly Lounge Podcast

This week in the 'Lounge, Ned and Madhu discuss the U.S. reopening for vaccinated travelers and what that means for airlines. But what caught their attention was the strong rebound Brazil's airlines have made. After a terrible second quarter marked by devastating Covid wave, Brazil's airlines are reaping the benefits of the country's strong and widespread vaccination program. Finally, Ned and Madhu mourn the Eastern Shuttle, which American is finally ending, and wonder where they can watch "Love on the Eastern Shuttle," a long-forgotten movie about the route. A full archive of the podcast is here.

Skift Aviation Forum, November 17

Join us at the Skift Aviation Forum, which is coming online on November 17. Airline Weekly members can register for free now. Speakers include Air Lease Corp.'s Steven Udvar-Hazy, American's Doug Parker, KLM's Pieter Elbers, and more. Sign in and join us.