Latin America’s leading airlines have announced a 2nd quarter plagued by losses and missed targets, sparking talks of future mergers. Copa Holdings SA, based in Panama, announced a 20% drop on this quarter, their fourth consecutive quarter in the red. Likewise, Latin America’s largest airline by market share, Latam Airlines Group, is expected to announce a seventh consecutive quarter of losses.
Despite their efforts to reduce costs, and operating in one of the fastest-growing markets in the world, Latin America’s airlines have faced persistent losses over 3 years. Latam, Gol and Avianca Holdings are all trading near historic lows, while Copa’s stock in the United States fell by 42% this year.
Both Latam and Gol may be looking into merging operations with Copa, whose market share is valued at $3.2 bn. Merging with Copa would offer savings in operating costs, while diminishing the risks of currency drops- especially for Gol, which has been buffeted by a shaky economy, a weakened currency and Brazil’s political turmoil.
José Efrómovich, CEO for Avianca Brasil, has predicted that in time “there will only be half a dozen airlines in the region”.
Source: La Estrella
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Pushes Review of CoStar’s Commercial Real Estate Antitrust Case
Jan 31, 2024 by
CPI
UK’s CMA Investigates Ardonagh’s Atlanta Group and Markerstudy Merger
Jan 31, 2024 by
CPI
Greenberg Traurig Grow Financial Regulatory and Compliance Practice
Jan 31, 2024 by
CPI
Dutch Regulator Fines Uber €10 Million for Privacy Violations
Jan 31, 2024 by
CPI
DOJ Investigates AI Competition, Eyes Microsoft’s OpenAI Deal: Bloomberg
Jan 31, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – The Rule(s) of Reason
Jan 29, 2024 by
CPI
Evolving the Rule of Reason for Legacy Business Conduct
Jan 29, 2024 by
CPI
The Object Identity
Jan 29, 2024 by
CPI
In Praise of Rules-Based Antitrust
Jan 29, 2024 by
CPI
The Future of State AG Antitrust Enforcement and Federal-State Cooperation
Jan 29, 2024 by
CPI