High Oil Prices Force Avianca to Cut Down on LatAm Flights

Latin America’s second-biggest carrier, Avianca, is reportedly set to cut down flights by 12% “temporarily” due to high oil prices and inflation.

Avianca is going to cut nearly 28% of its flights to Central American destinations, according to Aviacionline, threatening travel plans to the region.

This is, however, a temporary measure. All the flights will be reinstated in the first week of November this year.

Latin America’s aviation industry has almost rebounded to its 2019 levels in recent months, but rising oil prices and the currency devaluations are once again threatening to push regional airlines back into a financial mess.

With currency valuations varying rapidly across the region, setting airfare has become a challenge for most carriers. Rising petrol prices are only adding to the fire. Fuel accounts for about 30% of an airline’s operational cost.

“The situation is beyond the airlines’ control. The industry has sought mechanisms to mitigate the impact,” said an official from Avianca.

The following Latin American destinations are expected to remain unaffected: Aruba, Curacao, Buenos Aires (Argentina), São Paulo (Brazil), Rio de Janeiro (Brazil), La Paz (Colombia), Santa Cruz de la Sierra (Bolivia) and Santo Domingo (Dominican Republic).