U.S. Airlines See Major Growth in Latin America, But Face “Discriminatory” Fees in Key Markets
Airlines for America (A4A) SVP Keith Glatz calls out Argentina, Brazil, and Colombia for “anti-competitive” practices that threaten future connectivity.
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Speaking at the ALTA AGM Conference, a senior executive from Airlines for America (A4A) celebrated robust passenger and cargo growth in Latin America but issued a stark warning that "systematic challenges" and "discriminatory" fees in key markets are threatening future expansion.
Keith Glatz, Senior Vice President of International Affairs for A4A, stated that while U.S. carriers are "planning for continued growth" in the region, that optimism "hinges tremendously" on addressing anti-competitive and illegal practices in Argentina, Brazil, and Colombia.
A4A, which represents over 90% of U.S. passenger and cargo traffic—including carriers like American, Delta, United, JetBlue, FedEx, and UPS—is "announcing today a redoubling of our efforts and resources over the next three years in this part of the hemisphere" to combat these issues.
A Region of "Impressive" Growth
Glatz began by highlighting the "tremendous growth" U.S. carriers have experienced in the region. Since 2019, seven of the largest U.S.-Latin America non-stop markets have seen passenger growth of over 20%.
"This includes over 40% between the U.S. and Colombia... and similarly over 50% growth in the U.S. and El Salvador," Glatz noted.
He detailed A4A members' significant footprint in the three key markets:
- Total: 246 weekly passenger flights
- Colombia: 118 weekly flights
- Brazil: 93 weekly flights
- Argentina: 35 weekly flights
On the cargo side, A4A carriers moved over 300,000 tons to and from these three nations in the past year. "These are truly impressive numbers," Glatz said, "and underscore the value and importance we as an industry place in the region."
"Illegal and Discriminatory" Challenges
Despite the positive trends, Glatz identified these same three countries—Argentina, Brazil, and Colombia—as the markets "where we're experiencing the most significant operational and legal uncertainty and challenges."
The most significant issue, he stated, is "discriminatory air navigation fee structures."
"A4A is deeply concerned... where airlines operating international flights on the same routes as domestic airlines are charged substantially higher rates," Glatz said. "We are paying in some instances well over 200,000% more than the home carriers for the exact same service provided on the same route."
He labeled the practice "discriminatory," "illegal under the Open Skies agreements that each of those countries has with the United States," and "not compliant with the Chicago Convention."
Glatz also targeted a series of "market-distorting consumer rules" that he argued "don't do much to protect the consumer, but do a whole lot to interrupt the functioning and the efficient delivery of the services we provide." These included fare caps, overbooking restrictions, limits on ancillary fees, and mandatory free seat assignments, all of which he called "anti-competitive" and a "violation of the commercial freedoms" guaranteed in Open Skies agreements.
Finally, Glatz expressed extreme concern over Brazil's proposed VAT reform, which would tax international tickets purchased in the country at 13.5%. He warned this would elevate costs, harm demand, and ultimately lead to a "reduction in potential services to Brazil."
"Demand comes down, flight options come down, and connectivity craters," he said.
A Call for a "Level Playing Field"
In response to these challenges, Glatz said A4A’s "redoubled" efforts will focus on a clear message.
"Our members desire a level playing field. We want transparency in regulation, [and] full compliance with all international obligations," he stated.
Glatz added that the U.S. Department of Transportation is "certainly focused" on holding trading partners accountable to their Open Skies obligations and ICAO standards. He concluded by noting that U.S. carriers are working with the government to ensure smooth facilitation for upcoming global events, including the 2026 FIFA World Cup and the 2028 Olympics.
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