Brazil and Argentina drove regional growth
Brazil posted its highest-ever domestic traffic for a month of May, with 8.2 million passengers—6.3% above the previous May record (2015) and 14% higher than May 2024.
- This performance reflects a sustained trend: March, April, and May 2025 all set new monthly records for domestic travel in Brazil.
- Part of the momentum comes from lower fares—air transport was the service category with the sharpest price drop in May[1] (–11.3% YoY). Meanwhile, household spending on air travel rose 16.9% from January to April[2].
On international routes, Brazil saw double-digit growth: +13.2% YoY in May with 250,000 additional passengers. This marked the fifth consecutive monthly record. International air arrivals grew 38% year-to-date, driven by 1.5 million visitors from South America (+64%). Arrivals from Argentina surged 93%.
“The growth of Brazil’s air transport market reflects greater inclusion and accessibility. In the past 20 years, average domestic fares (inflation-adjusted) have fallen from 851 to 543 reais, and international fares from 892 to 665 reais since 2011[3]. This progress must not be taken for granted. Fiscal proposals such as a 26.5% VAT on airline tickets could jeopardize these gains and limit millions of Brazilians’ ability to fly,” said Peter Cerdá, ALTA’s Executive Director and CEO.
Argentina posted the region’s highest domestic growth rate at 21% YoY. International traffic rose 19%, boosted by a 52% surge in outbound travel by residents.
- The top destinations were Brazil (+110%), Chile (+99%), and Europe (+45%.
- This trend reflects a favorable exchange rate and the easing of travel restrictions that lowered the relative cost of flying abroad.
Mexico, LAC’s second-largest market
Mexico’s domestic traffic grew 2.1% in May (+109,000 passengers). However, several of the country’s busiest routes saw declines. International traffic also rose 2.1%, but the three busiest U.S.-Mexico routes recorded drops.
Weaker performance in Colombia, Chile, and the LAC–U.S. segment weighed on overall growth:
- In Colombia, domestic traffic declined 6.2% YoY, marking the fourth straight month of contraction. The operating environment has become more challenging: the official exchange rate (TRM) depreciated 8.3% YoY in May[4], increasing the cost of dollar-denominated expenses such as fuel, maintenance, and leasing. On top of that, the national carbon tax was raised in February.
- In Chile, domestic traffic fell 1.0%.
- Extra-regional international traffic decreased 0.6%, the first drop since April 2021.
Intra-regional international traffic recorded strong growth
Traffic within the region rose 15.4% across key market pairs: Argentina–Brazil, Colombia–Panama, Brazil–Chile, and Argentina–Chile.
Key metrics summary
- Available seat kilometers (ASK) grew 3.2%.
- Revenue passenger kilometers (RPK) increased 3.0%.
- The average load factor stood at 84.4%.
- From January to May, total passenger traffic in LAC reached 199 million—a 3.9% increase versus the same period in 2024.
