Oct. 29 (UPI) -- Latin American airlines warn that new connection fees and high airport taxes are driving up airfares and could divert traffic to other hubs just as the region reaches its highest level of air connectivity.
Leaders of the Latin American and Caribbean Air Transport Association said at a recent meeting in Lima that although the industry generated $240 billion in 2024, equal to 3.6% of the region's gross domestic product, and provided jobs for 8.3 million people, "excessive" tax burdens threaten its growth.
Air Transport Association Executive Director Peter Cerdá said airlines are profitable, but operate on very thin margins.
"We earn just $3.40 per passenger carried," Cerdá said. He added that Latin America remains the most expensive region in the world for fees and taxes, affecting both domestic and international flights.
According to the International Air Transport Association, taxes and charges in North America represent about 15% of the average ticket price, while in Latin America some estimates put that figure as high as 40%, depending on the country.
