According to the International Air Transport Association, taxes and charges in North America represent about 15% of the average ticket price, while in Latin America some estimates put that figure as high as 40%, depending on the country. File Photo by James Ross/EPA
Latin American airlines warn that new connection fees and high airport taxes are driving up airfares and could divert traffic to other hubs just as the region reaches its highest level of air connectivity.
Leaders of the Latin American and Caribbean Air Transport Association said at a recent meeting in Lima that although the industry generated $240 billion in 2024, equal to 3.6% of the region’s gross domestic product, and provided jobs for 8.3 million people, “excessive” tax burdens threaten its growth.
Air Transport Association Executive Director Peter Cerdá said airlines are profitable, but operate on very thin margins.
“We earn just $3.40 per passenger carried,” Cerdá said. He added that Latin America remains the most expensive region in the world for fees and taxes, affecting both domestic and international flights.
According to the International Air Transport Association, taxes and charges in North America represent about 15% of the average ticket price, while in Latin America some estimates put that figure as high as 40%, depending on the country.
One example is Lima’s new Jorge Chávez International Airport, which plans to introduce a new fee for connecting international passengers that, according to Air Transport Association,, could reduce demand by between 3% and 11%. The measure was postponed until December after objections from the tourism sector.
Airport fees in the region are set by government authorities or by private concessionaires operating airports under state contracts. The fees are included in ticket prices and fund terminal maintenance, security and airport services, although airlines argue that in many cases the money is not reinvested in infrastructure.
Airlines compare these surcharges to “hub taxes” and warn that countries such as Panama, whose economy depends on connectivity, could lose competitiveness if they tax passengers who are only in transit.
Other industry executives agree that flying in South America “is not a tourist luxury” but often the only way to connect regions separated by jungles or mountain ranges.
Analysts from the Altitud podcast described Brazil as “the aviation engine of South America” and noted that any slowdown in its domestic market immediately affects hubs such as Lima, Bogotá and Panama.
Altitud also noted that Chile, which stretches more than 2,400 miles and lacks a national rail network, considers aviation essential infrastructure. Chileans take on average more than one flight per year, nearly double the regional average.
The airline association estimates that by 2033, the industry’s economic impact could reach $500 billion and 15 million jobs if governments implement consistent and predictable policies.
Juan Carlos Salazar, secretary-general of the International Civil Aviation Organization, noted that the group’s 192 member states have approved a 2050 roadmap with three goals: zero accidents, net-zero emissions and connectivity for all.
