Latin America’s airline apocalypse signals a future with weak competition

Investing.com | Jun 29, 2020 at 2:00 AM
  • Bankrupt LATAM Airlines (SN:LTM) and Avianca Holdings (CN:AVT_p) are dramatically retrenching their once grand ambitions amid the COVID-19 pandemic, reducing competition in Latin America as they mull once-unthinkable cooperation with rivals.
  • Since May, LATAM has exited Argentina, partnered with rival Azul SA (N:AZUL) in Brazil and cut back domestic operations in Chile, while Avianca has departed Peru.
  • The scaling back could reshape air travel in Latin America, weakening competition regionally and driving up ticket prices while also helping some carriers survive.