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Low-cost airlines are flying high in Central America

Monday, July 17, 2017

Low cost airlines are finally starting to penetrate the intra-Central America market, driven primarily by the launch of the region’s first local lo-cost operator. Mexico’s Volaris launched a subsidiary in Costa Rica at the end of 2016 and the new airline has so far launched five routes – all of which are international routes within Central America that were not previously served by low-cost airlines.

Travel within Central America, which has a population of 45 million, has always been inhibited by high fares and a lack of competition. For the first time, six of the main city pairs within Central America how have low-cost option, with five served by Volaris and one by Copa’s new brand Wingo.

Central America should continue to experience a surge in new low-cost flights as it is one of the world’s most underpenetrated markets. However, high taxes and airport costs remain a major impediment to growth.

Source: Center for Aviation