In late June, over 400 senior aviation executives, policymakers, and public officials convened in Bogotá for the International Air Transport Association’s (IATA) Wings of Change Americas (WOCA) conference—marking the first time the event was hosted in Colombia.
Set against the backdrop of a region grappling with economic disparities, fragmented regulation, and mounting demand for air connectivity, the two-day forum underscored the urgency of aligning policy and industry efforts to ensure aviation remains a key driver of growth and inclusion across Latin America and the Caribbean.
Latin American Aviation is at a Tipping Point
Across the region, planes are full, demand is surging, and middle-class travelers are ready to take to the skies. But years of underinvestment, erratic regulation, and tax-heavy policies are beginning to take their toll.
As Peter Cerdá, IATA’s Regional Vice President for the Americas, took the stage to deliver his opening remarks, the message was clear: aviation in Latin America and the Caribbean is not merely a mode of transportation—it’s a catalyst for economic and social transformation.
“Each flight represents a step toward opportunity,” Cerdá told delegates. “Economic opportunity, social inclusion, and regional integration. But to reach our full potential, we need to overcome the obstacles holding us back.”
Throughout the two-day summit, the exchange of ideas was shaped by a high-caliber lineup of airline CEOs who brought regional nuance and business insight to the forefront of every conversation.
Among the most prominent voices were Adrian Neuhauser (Abra Group), Frederico Pedreira (Avianca), Erika Zarante (LATAM Airlines Colombia), Pedro Heilbron (Copa Airlines), Estuardo Ortiz (JetSMART), Eduardo Lombana (Wingo), and Roberto Roselli (Plus Ultra), among others, each offering clear-eyed perspectives on growth, regulation, and sustainability. Their contributions reflected the breadth of airline models and market realities across the Americas.
Adding a strong institutional presence, Carlos Galán, the Mayor of Bogotá, emphasized the central role of Colombia’s main gateway, El Dorado International Airport, in driving local and regional progress.
A Region of Immense Potential—Grounded by Barriers
The numbers tell both a story of promise and a paradox. Air transport in Latin America and the Caribbean supports 8.3 million jobs and contributes $240 billion to the region’s GDP. Yet the average person flies less than once a year—only 0.65 trips, compared to 2.5 in North America and 4.5 in Spain.
In 2024, nearly 481 million passengers traveled across the region, a 7.8 percent increase from the previous year. Colombia’s domestic market has surged 38.8 percent over the past decade, driven in part by increased competition. In Brazil, international traffic spiked 17.7 percent in the first half of 2025 alone.
But that momentum risks stalling, according to IATA. The region’s average airline profit is just $3.40 per passenger—”less than the cost of a Juan Valdez coffee at the airport,” Cerdá quipped. “This margin leaves us highly vulnerable to external shocks—from political instability to outdated infrastructure.”
Taxes That Clip Wings
Aviation in Latin America has long battled a contradiction: it is essential, yet it is taxed as if it were a luxury.
In some Caribbean nations, taxes and fees account for up to 40 percent of the cost of a plane ticket. The latest concern comes from Brazil, where a proposed 26.5 percent VAT on airfares could slash passenger demand by as much as 30 percent.
“Airlines have worked hard to bring prices down. Since 2015, fares in Brazil have dropped over 15 percent internationally and nearly 15 percent domestically. The ball is now in the government’s court,” said Cerdá. “Punitive taxes only make flying inaccessible for the very people we need to serve.”
Under the proposed VAT, average domestic airfares in Brazil could rise from $130 to $160, while international fares may climb from $740 to $935—pricing out millions of travelers.
A Patchwork of Policies
Cerdá also warned of a “fragmented regulatory landscape.” With 33 countries and 33 sets of aviation rules, the lack of regional harmonization creates inefficiencies and hinders connectivity.
Consumer protection laws—many modeled after Europe’s EU261—are spreading across the region but are often misaligned with local operational realities. Proposed laws in Peru, Colombia, Chile, Brazil, and Mexico aim to ban ancillary fees, cap fares, or penalize overbooking, potentially driving up costs for both airlines and passengers.
“The test of any regulation should be simple,” Cerdá said. “Does it solve a real problem? And do its benefits outweigh the cost?”…
