Despite the growth of the airline industry in Latin America, for the last 10 years it has faced obstacles to its expansion: higher taxes, rising operating costs and an infrastructure that does not grow at the same rate as the market .
Peter Cerdá, executive director and CEO of the Latin American and Caribbean Air Transport Association (ALTA) , specified that between January and July 2026, passenger traffic in the region grew 2%, air cargo increased 3.6% and operations advanced 2.7%, in addition to the opening of more than 90 new routes compared to the same period in 2025.
However, there are still challenges that need to be addressed, such as a growing tax burden on passengers and insufficient investment in airport infrastructure.
“The challenges remain the same. Today, more than half of the region’s flights operate in congested airports. There are more than 160 legislative initiatives that go against the sector, and the region continues to have the highest taxes, fees, and charges in the world. We cannot go another 10 years without making progress on these issues; as an industry, we need a stronger alliance with the region’s governments,” said Cerdá at the ALTA AGM & Airline Leaders Forum 2026 .
He warned that in several markets, passengers are paying more in taxes , duties, and fees than for the air transport service itself. The case of Mexico stands out as one of the most representative examples.
Currently, taxes and fees account for 65.2% of the cost of a domestic ticket and 59.3% of an international one. This means that a large portion of the final price of the trip is not related to the air service itself, but rather to government and airport charges.
The situation could worsen with the planned increase in the Non-Resident Duty (DNR) for 2027. According to ALTA’s calculations, Mexico already has the highest costs among the markets analyzed , with approximately $131 in charges applied to each foreign passenger. With the announced adjustment, that figure will climb to $141.
For the industry, measures of this kind have a direct impact on competitiveness . Each new charge increases ticket prices, reduces accessibility to air travel, and diminishes destinations’ ability to attract visitors, investment, and new routes.
He indicated that airlines are also facing a significant increase in their operating costs, particularly fuel. In just one year, this item rose from representing 28% to 38% of total operating costs . At the same time, the fuel bill increased by 79%, reducing the financial margins of an industry that has historically operated with limited profitability.
In this context, ALTA considered that each new tax or regulation becomes even more relevant, as it adds to an increasingly heavy cost structure for airlines.
Furthermore, he highlighted that more than half of Latin America’s flights currently operate at congested or severely congested airports. This situation affects several of the region’s major hubs , where demand already exceeds the available capacity to handle aircraft, passengers, and cargo.
In that regard, Cerdá considered that the region needs to accelerate investments in airports, expand terminals, modernize facilities and develop long-term projects capable of supporting the expected growth in demand.
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