Driven by low-cost carriers and Argentina’s boom, Latin American aviation hits record capacity
The Latin American air travel market posts a record monthly capacity. Low-cost airlines are growing twice as fast as traditional carriers, with Argentina and Brazil leading the expansion.
Commercial aviation in Latin America shows remarkable dynamism in June 2025, reaching a historic 41.2 million scheduled seats. This figure, which represents a 4.1% increase compared to the same month in 2024, reflects the activity of 154 airlines operating in 531 airports across the region.
Although full-service carriers still hold 60% of the market, the main driver of this expansion is the low-cost carriers (LCCs). This segment increased its capacity by 6.1% year-over-year, reaching 16.4 million seats and growing at twice the pace of full-service competitors. This trend is redefining the competitive landscape and pushing fares down to the benefit of passengers.
OAG’s breakdown of the Latin American market by country reveals varied dynamics. Brazil remains the largest market, with 11.6 million seats and solid 10.5% growth. However, the most pronounced expansion is in Argentina, where capacity surged 14.8% year-over-year, adding more than 288,000 seats. This strong growth, driven by open-skies policies and aggressive LCC strategies, contrasts with the situation in Colombia. The Colombian domestic market shows a contraction with 183,000 fewer seats, a direct consequence of the shutdown of Viva Air and Ultra Air in 2023, a gap that has yet to be fully absorbed by remaining operators.
Why are low-cost airlines growing so much in Latin America?
The low-cost model thrives in the region thanks to several factors. They operate fleets consisting of a single aircraft type (usually the Airbus A320 family or Boeing 737) to reduce maintenance and training costs. They maximize aircraft usage with high frequencies and short turnaround times. Additionally, direct online sales and charging for extra services allow them to offer lower base fares, attracting a new segment of travelers.
Among major airline groups, LATAM Airlines Group strengthens its leadership by increasing its offer by 8.2%, reaching 8.3 million seats. The airline shows a solid position in key markets such as Brazil, where its domestic capacity grew by 13% in May, according to traffic reports.
JetSMART stands out as a clear example of LCC progress, with a 32.2% increase in capacity. This growth is supported by the addition of high-density Airbus A321neo aircraft and an expansion that, in Argentina’s domestic market, positioned it as the second-largest airline. Estuardo Ortiz, CEO of JetSMART, recently emphasized that progress in regulatory modernization in Argentina is a “key growth factor.”
In Brazil, GOL Linhas Aéreas added 610,000 seats this month, a 21.5% increase compared to the previous month. The company, which recently completed its financial restructuring under Chapter 11 in the U.S., is now in a stronger position to execute its expansion plans with an optimized fleet.
This dynamism has reshaped the ranking of the busiest airports. Guarulhos International Airport (GRU) in São Paulo, with 2.31 million seats and a 10.7% increase, has overtaken El Dorado Airport (BOG) in Bogotá as the region’s main hub. The largest percentage growth among major airports was seen in Buenos Aires (combining Aeroparque and Ezeiza), with a combined 31.1% capacity increase compared to June 2024.
International traffic, which represents 35% of the total, also grew 5%. North America remains the top destination outside the region, with 6.6 million seats. However, the strongest percentage growth was seen toward the Asia-Pacific region, with a 65% increase. The largest numerical increase came from intra-regional travel, which added 550,000 seats, a 10% increase from the previous year, signaling stronger tourism and economic ties within Latin America.
AUTOR
Desde 2017, haciendo periodismo aeronáutico. Award-Winning Journalist: Ganador de la edición 2023 de "Periodismo de Altura", otorgado por ALTA. Facts don't care about your feelings.
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