High oil prices blamed
Latin America’s second-biggest carrier, Avianca, seems set to cut the number of flights to the region on a temporary basis.
Reports suggest that some 12 per cent of flights could be cut as a result of high oil prices and inflation.
The following Latin American destinations are expected to remain unaffected: Aruba, Curacao, Buenos Aires (Argentina), São Paulo (Brazil), Rio de Janeiro (Brazil), La Paz (Colombia), Santa Cruz de la Sierra (Bolivia) and Santo Domingo (Dominican Republic).
Aviacionline reports that Avianca is going to cut nearly 28 per cent of its flights to Central American destinations, threatening travel plans to the region. This is, however, a temporary measure.
The airline indicated that all the flights will be reinstated in the first week of November this year.
Nearshore Americas has reported that Latin America’s aviation industry has almost rebounded to its 2019 levels in recent months.
However, rising oil prices and the currency devaluations are once again threatening to push regional airlines back into a financial mess. With currency valuations varying rapidly across the region, setting airfare has become a challenge for most carriers.
Rising petrol prices are only adding to the fire. Fuel accounts for about 30 per cent of an airline’s operational cost.
“The situation is beyond the airlines’ control. The industry has sought mechanisms to mitigate the impact,” said an official from Avianca.