The International Air Transport Association (IATA) has urged governments in Latin America and the Caribbean to work with industry to make infrastructure a priority in unlocking aviation’s economic and social benefits.
Passenger demand in Latin America and the Caribbean is expected to more than double from 298 million in 2015 to 658 million in 2035. If that demand is met, the number of jobs supported by aviation in the region will grow from 5.4 million to 8.4 million over the same period. And aviation’s contribution to regional GDP will increase from $176 billion to $380 billion.
"Aviation is the business of freedom. It helps people to trade, to discover and to better their lives. A successful aviation industry generates prosperity. Despite protectionist rhetoric -- which we must be robust in countering -- economies need air connectivity to grow and integrate with world markets," said Alexandre de Juniac, IATA’s Director General and CEO during the Latin American and Caribbean Air Transport Association (ALTA) Airline Leadership Forum in Mexico City.
Focusing further on Latin America and the Caribbean, de Juniac noted the many challenges that airlines face. "Operational costs are high. Taxes are significant. In addition, regulations are burdensome and often not aligned with global standards. We need a strong partnership with governments that focuses on unlocking aviation’s benefits to tackle these issues effectively. On top of that, in Latin America there is a huge opportunity for a government-industry partnership to create value by addressing the region’s many infrastructure deficiencies.