Connectivity in the Americas in critical condition

According to ALTA 431,179 passengers traveled in Latin America and the Caribbean in June, 94.2% less than in 2019. Ecuador, Peru and some Caribbean countries have returned to operating but the industry needs clear signals to survive

The Latin American and Caribbean Air Transport Association (ALTA) announced that airlines operating in the Latin American and Caribbean market carried 2.7 million passengers in June, 92.3% less, or -32,324,328 fewer passengers, than the last year. Traffic (RPK) decreased 94.3% and capacity (ASK) decreased 92.9%, bringing the load factor to 65.3%, 16.6 percentage points less than in 2019.
431,179 passengers traveled to and from Latin America and the Caribbean in June, 94.2% less than the previous year. Traffic (RPK) decreased 98.6% and capacity (ASK) decreased 95.9%, bringing the load factor to 66%.

IATA, for its part, has marked somewhat alarming data in its June traffic report, there it stands out that it is likely that we will see a degree of repressed demand as restrictions are lifted in the tourism market, but the most complex segment to recover it will be business. At the same time, they emphasize that recovery to levels prior to the health crisis will take until 2024.

Jose Ricardo Botelho, CEO and Executive Director of the Latin American and Caribbean Air Transport Association stated: "The data from the Traffic Report for the month of June 2020 reflects the timid restart of passenger air operations in the region with the reactivation of some markets like Ecuador, Peru and some Caribbean countries like Curaçao ".

"Although traffic decreased more than 90% compared to June 2019, this month showed some positive signs for the industry. In June a total 2.7 million passengers traveled, that is, more than double the lowest point of the year. which was April when only 1.1 million passengers traveled. On the other hand, the load factor was 65.3%, higher than the 40% registered in May ".

"The domestic market in Brazil - the largest in the region - which had registered falls of over 90% in April and May, decreased 87% in June, which shows, as we mentioned before, that the commercial aviation industry is starting to restart slowly. It is very likely that in July and August we will continue to see gradual improvements with the reopening of other markets."

"Some estimates indicate that by December 2020 we could operate 50% of the capacity originally planned for the year, with traffic levels similar to those we had in 2009. For this reason, from ALTA we continue to join efforts to achieve the timely reopening of the skies in the region and provide passengers with confidence in the biosafety protocols that are being applied so that aviation is not a vector of the virus."

"We must reactivate this powerful economic engine and source of well-being for millions of people in the region. We still have a lot of work ahead of us, but this report shows the first positive signs of a highly resilient industry."

Aviation, the axis of economic recovery
Gloria Guevara, president and CEO of WTTC, stated: “Governments should not completely shut off access to other countries. Regional border measures should only be imposed if they are essential, so that the recovery of a country's entire economy is not compromised in the future.

"Establishing 'air corridors' between financial centers where infection levels are low would provide a vital boost to business travel and aid economic recovery."

“Enforcing restrictions across the country is a forceful instrument that benefits no one; not travelers, local people, the economy or the travel and tourism sector, which has been affected by the impact of travel restrictions around the world.

“Such measures could undo significant efforts to reactivate Travel & Tourism, which has recently shown encouraging signs of emerging from the worst of the pandemic and which in turn has brought hope to millions of people around the world who depend on the sector for their Livelihoods".

"Taking a more carefully calibrated approach to strategically combat coronavirus spikes with local measures rather than closures across the country will contain COVID-19 and preserve a country's attempt to jump-start its economy by continuing to attract travelers to unaffected areas."

“Travel and tourism are critical to driving that economic recovery, generating one in four of all new jobs last year. Our 2020 Economic Impact Report shows that during 2019 the sector supported one in 10 jobs of all jobs (330 million in total) and made a massive contribution of 10.3% to global GDP."

“It is perfectly possible to fight COVID-19 and support economic recovery through the travel and tourism sector at the same time. We urge governments to consider only local closures as the key to opening the door to a successful path forward. "

Decisive moments
In the last few days, Panama has reopened operations and it is expected that Colombia will open in September, these are two of the key countries for aviation in the region. Costa Rica and the Dominican Republic have also opened their operations with some restrictions. Meanwhile, there are negative signals from Argentina whose authorities have indicated in recent days that there is no confirmed date for the reopening of regular domestic and international commercial aviation.

At the same time, the market suffers from great uncertainty regarding the connectivity that airlines such as LATAM and Avianca may offer, which are in dire economic situation and which played a central role in the continent's connectivity.

Airports and your vision
Luis Felipe de Oliveira, Managing Director of ACI World said: "While there is a long way to go, there are some promising signs of recovery on the horizon as we begin to restart our industry from a standstill. To help restore confidence from the public in air travel, ACI has launched the Airport Health Accreditation program to assist airports by evaluating new health measures and procedures introduced as a result of the COVID-19 pandemic compared to global standards."

"I am very impressed with how the industry is rapidly adapting to new realities and introducing new protocols based on globally consistent criteria. This accreditation will be crucial in demonstrating to the traveling public that airports are doing everything possible to help restore the confidence of the public in air travel".




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