IATA Sees “Unacceptable” Trend of Increase in Taxes and Air Fares in Latin America

The countries of Latin America show a growing trend of raising taxes and fees on air activity, at a time when the sector is recovering from the crisis caused by the pandemic of the COVID-19 that will keep it in deficit in the coming years, said the main trade body of the industry.

The International Air Transport Association (IATA), said Argentina implemented additional taxes on ticket sales, increased the international departure tax, while Costa Rica plans to increase airport security fees at the San José airport by more than 70%.

In addition, the Dominican Republic plans to increase ground handling fees by just over 6% next year and El Salvador is adding an agricultural inspection fee to airline tickets, said IATA Director General Willie Walsh.

The manager stressed that although the region is showing a recovery in air traffic, “we are seeing growing trends from our so-called partners to increase taxes and fees,” referring to the authorities of some countries.

“These (increases) are unacceptable in times of crisis and we cannot tolerate that others follow in their footsteps,” he said in a presentation during the annual meeting of Latin American and Caribbean airlines in Bogotá.

Walsh revealed that IATA projects a cumulative loss for Latin America-based airlines of US $ 5.6 billion this year, which would drop to about US $ 3.7 billion in 2022.

“This crisis goes beyond anything we have experienced before,” said the manager. “The good news, however, is that I think the worst is over and we can see a path to normalcy.”

According to IATA, domestic markets are expected to reach almost 75% of pre-pandemic levels by the end of this year, although international travel would reach 22% pre-crisis due to restrictions maintained by COVID- 19.

Precisely, representatives of the aviation sector consider it key that an international homologation of requirements related to the coronavirus pandemic for travelers be finalized, to avoid a brake on the recovery of the industry. “The general mood in the industry, I think, is one of cautious optimism,” Walsh concluded.