Quantcast
Transport Airlines

U.S. carriers jump into Latin America market only to find little demand

Excerpt from CAPA - Centre for Aviation

Feb 02, 2013 1:01 pm

Skift Take

There was definitely a demand for flights from Latin America to the U.S. when legacy carriers started the routes, but their synchronous timing hurt every one’s yields.

— Samantha Shankman

Come Attend the Best Conference in Travel

Free Report: The Megatrends Defining Travel in 2015

US carriers are facing some weakness in their Latin American performance as significant capacity growth between the two regions appears to be pressuring unit revenue and yields. All three major US network carriers with a robust presence in the market – American, Delta and United – watched their yields plummet during 4Q2012 as they expanded capacity significantly to Latin America year-over-year.

The weakness during the last three months of 2012 follows a somewhat lacklustre performance by those airlines during 3Q2012, which could indicate the US-Latin American market is reaching a certain level of maturity.

Read the Complete Story →

Tags: , ,

Next Up

More on Skift

Daily Travel Startup Watch: CityScout, Stayzapp and More
Interview: Spirit CEO on Building an Airline That Trades Comfort for Low Fares
Skift Business Traveler: Is Delta No Longer The Frequent Flyer’s Airline?
How Hotels and Airports Cater to the 21st Century Business Traveler