India approves AirAsia India proposal
6th March 2013
Latin American airlines are expected to record a net loss of about $1.4 billion in 2023, as per the latest figures revealed by International Air Transport Association (IATA).
Speaking at the IATA’s Wings of Change, Peter Cerdá, regional vice president for the Americas, IATA said: “The carriers in the region are expected to lose about $1.4 billion in 2023 or about $4.92 per passenger. Those numbers starkly contrast with IATA’s expected net revenue of $9.8 billion globally.”
The North American carriers will have the best financial performance in 2023. IATA expects them to record a net profit of $11.5 billion. European airlines will profit $5.1 billion, and Middle Eastern carriers will get $2.0 billion. In contrast, African airlines will lose about $500 million, Latin American airlines $1.4 billion, and Asia-Pacific carriers $6.9 billion.
In the first quarter of 2023, LATAM, Volaris, and Azul posted net losses with three airlines ceasing operations. Other companies like Aeromexico and Avianca have kept their financial results private. Three companies Copa Airlines, GOL, and Viva Aerobus recorded net profits.
IATA pointed out high costs, weak local currencies, and governments applying burdensome taxes, which led to an overall increase in the average ticket fares. Prime examples are Colombia increasing the Valued Added Tax on airline tickets this year from 5% to 19%, and the Bahamas charging $95.70 in taxes for every passenger looking to visit the Caribbean nation.