An Azul aircraft overflies the “Christ the Redeemer” statue in Rio de Janeiro.
Air passenger traffic growth in Latin America and the Caribbean has slowed considerably since early 2026, when brisk gains preceded a sharp rise in jet fuel prices.
The Latin American and Caribbean Air Transport Association (ALTA) reported that 40.9 million passengers traveled to, from and within the region in August, up 0.8% year over year. That marks a major reduction in the rate of growth compared with February, when passenger traffic grew 6.6% year over year, the region's best performance since October 2024.
Jet fuel prices have soared since the Iran war started at the end of February. According to ALTA, the average price of jet fuel in Latin America and the Caribbean was $4.61 per gallon for the week ending Oct. 16, up 108.6% year over year.
Airlines have said demand in the region has been resilient—particularly among less price-sensitive premium passengers—even as fares have increased, enabling carriers to continue generating solid revenue and some growth in numbers. But the 6% year-over-year pace of growth in passengers recorded for the first quarter has slowed to a 1.8% year-over-year increase for the first eight months of 2026.
ALTA said passenger growth in August was concentrated in travel within the region, continuing a trend seen throughout the year. Domestic passenger traffic in August rose 1.9% year over year, and intraregional international traffic grew 3.1%. International traffic to and from markets outside the region declined 1.9% compared with August 2025.
Brazil saw the biggest increase in absolute passenger numbers in August, adding 324,000 passengers versus August 2025, up 2.9%. Panama added 294,000 passengers, up 15.9%, and Mexico added 172,000 passengers, up 1.7%.
“Mexico posted its second consecutive month of growth,” ALTA said. “Its domestic market rose 5.2%, while international traffic fell 2.6%. Traffic between Mexico and the U.S. declined 6.1%.”
Markets not performing well in August included Jamaica, where passenger traffic fell 15% year over year; Argentina, down 2.9%; Chile, down 2.1%; and Bolivia, down 5.3%.
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