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

Free Report: The State of Chinese Outbound Market Travel

Free Report: The State of Student Travel

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 →

Next Up

More on Skift

Daily Travel Startup Watch: Homelike, WunderWalk and More
Interview: Auberge Resorts CEO Wants to Give Guests More Control
Booking.com’s Work for Marriott is a Sneak Peak Into the Future
From Campaigns to Content: The Evolution of Hotel Marketing