SANTIAGO, Chile — Rising fuel costs are putting pressure on Latin American airlines, threatening to slow tourism growth as carriers raise fares to offset higher operating expenses, industry leaders warned at a regional aviation conference in Mexico City.
Fuel accounted for 38% of airlines’ operating costs in the second quarter of 2026, up from 28% a year earlier, according to figures presented by Peter Cerdá, chief executive of the Latin American and Caribbean Air Transport Association (ALTA).
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Total fuel expenditure rose by nearly 80% over the same period, based on financial reports from airlines representing more than 80% of the region’s passenger traffic, according to Valora Analitik, which attended the conference.
The figures were presented at ALTA’s annual Airline Leaders Forum, held from Sunday to Tuesday in Mexico City. The event brought together airline executives, aviation regulators and industry representatives to discuss challenges facing the regional aviation sector.
According to Aviation Week, Deutsche Bank aviation analyst Michael Linenberg told conference participants that Latin American airlines’ fuel expenses in 2026 were expected to be $3.4 billion higher than projected in February.
Airlines are responding by raising fares and prioritising higher-paying passengers, while larger carriers are generally better positioned to absorb rising costs. Smaller and low-cost airlines, however, could face greater financial pressure as fuel expenses increase.
Despite the challenges, passenger traffic across Latin America and the Caribbean grew by 2% between January and July compared with the same period in 2025. Airlines also introduced more than 90 routes across the region, according to ALTA.
However, Cerdá warned that rising fuel prices, airport charges and taxes could constrain further expansion and make air travel less affordable for passengers.
The aviation industry contributes approximately $240 billion to Latin America’s economy and supports around 8.3 million jobs, according to figures presented by the association.
Cerdá called for closer cooperation among governments, airlines and airports to improve infrastructure, review tax policies and maintain affordable air travel as the region’s aviation market continues to develop.
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