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Latin America Air Freight Industry Market Size (2024 - 2029)

The Latin America air freight market is poised for growth, driven by increased capacity and rising demand for perishable goods. Despite challenges such as outdated regulations and infrastructure limitations, the region has seen significant expansion in freight volumes and capacity. The market's expansion is supported by new routes and investments in aircraft, although the sector faces difficulties like grounded planes and reduced demand compared to the pandemic peak. These factors contribute to a complex landscape for the market's future trajectory.

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Market Size of Latin America Air Freight Industry

Latin America Air Freight Industry Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.04 Billion
Market Size (2029) USD 1.28 Billion
CAGR (2024 - 2029) 4.22 %
Market Concentration Low

Major Players

Latin America Air Freight Industry Major Players

*Disclaimer: Major Players sorted in no particular order

Latin America Air Freight Industry Market Analysis

The Latin America Air Freight Industry is expected to grow from USD 1.04 billion in 2024 to USD 1.28 billion by 2029, at a CAGR of 4.22% during the forecast period (2024-2029).

The air trade in Latin America is growing with increased capacity addition and demand for fresh Latin American perishable goods across the globe. However, the archaic regulations and slow growth in infrastructure are hindering the continent from realizing its full potential.

As per the industry experts, in August 2022, the region had a 9.0% increase in freight volumes for airlines compared to August 2021. Among other areas, Latin America witnessed a significant growth rate. The growth is mainly attributed to the offering of new routes and capacity. The region is also expected to invest more in aircraft for air cargo in the upcoming months. The capacity increased by 24.3%.

The most robust year-on-year performance was achieved by Latin American carriers, with a 2.0% increase in demand for international operations between 2022 and 2023 compared to +1.9%. Capacity also significantly increased by 13.2% (+16.9% for international operations).

The air freight sector is experiencing several difficulties, including planes being grounded, routes being cut, and a drop in demand. Certain global air freight corporations indicate a slackened demand compared to the pandemic.

In contrast to the booming consumer demand that characterized the preceding two years, the air freight sector is currently facing a decline in customer demand, notwithstanding the time of year. Due to several circumstances, air freight companies anticipate a subdued fourth quarter in 2022. These included the broken supply chain, the protracted war, the slowdown of the world economy, and the possibility of a worldwide recession.

Latin America Air Freight Industry Industry Segmentation

The airfreight or air cargo market covers the carriage or transportation of goods by air in overseas and local markets. A complete background analysis of Latin America's air freight industry, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

Latin America's air freight industry is segmented by services (transport, forwarding, and other services), destinations (domestic and international), carrier type (belly cargo and freighter), and country (Brazil, Mexico, Argentina, Colombia, and the Rest of Latin America). The report offers market size and forecasts for all the above segments in value (USD).

By Services
Transport
Forwarding
Other Services
By Destination
Domestic
International
By Carrier Type
Belly Cargo
Freighter
By Country
Brazil
Mexico
Argentina
Colombia
Rest of Latin America
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Latin America Air Freight Industry Size Summary

The Latin American air freight industry is poised for growth, driven by increased capacity and the rising demand for perishable goods from the region. Despite challenges such as outdated regulations and slow infrastructure development, the sector is experiencing a notable expansion in freight volumes and capacity. The introduction of new routes and investments in aircraft are expected to further bolster the market. However, the industry faces hurdles, including grounded planes, route reductions, and fluctuating demand, which have led to a more subdued market outlook compared to the previous years of high consumer demand. The impact of global economic factors, such as supply chain disruptions and geopolitical tensions, has also contributed to a cautious forecast for the air freight sector.

E-commerce and social commerce are emerging as significant opportunities for logistics providers in Latin America, with the region witnessing a shift towards social commerce platforms. The proliferation of smartphones and the appeal of diverse payment options are driving this trend, particularly in countries like Brazil, Colombia, and Mexico. Brazil's air cargo market benefits from its strategic trade relationship with the United States, although complex local regulations pose challenges for exporters. The industry is moderately fragmented, with major players like FedEx, UPS, and Emirates dominating the market. Recent developments, such as strategic partnerships and the establishment of new logistics hubs, are aimed at enhancing supply chain visibility and efficiency, particularly in Brazil, which remains a key market for air freight services.

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Latin America Air Freight Industry Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Overview

    3. 1.3 Market Dynamics

      1. 1.3.1 Drivers

        1. 1.3.1.1 Extension of new air routes and capacity

        2. 1.3.1.2 Constant Need to Transport Temperature-Sensitive Products

      2. 1.3.2 Restraints

        1. 1.3.2.1 Market Uncertainty

      3. 1.3.3 Opportunities

        1. 1.3.3.1 Implementation of Several Software Solutions

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Government Regulations and Initiatives

    7. 1.7 Supply Chain/Value Chain Analysis

    8. 1.8 Technology Snapshot and Digital Trends

    9. 1.9 Spotlight on Key Commodities Transported by Air

    10. 1.10 Elaboration on Air Freight Rates

    11. 1.11 Insights into Key Ground Handling Equipment in Airports

    12. 1.12 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods

    13. 1.13 Brief on Cold Chain Logistics in the Air Cargo Sector

    14. 1.14 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Services

      1. 2.1.1 Transport

      2. 2.1.2 Forwarding

      3. 2.1.3 Other Services

    2. 2.2 By Destination

      1. 2.2.1 Domestic

      2. 2.2.2 International

    3. 2.3 By Carrier Type

      1. 2.3.1 Belly Cargo

      2. 2.3.2 Freighter

    4. 2.4 By Country

      1. 2.4.1 Brazil

      2. 2.4.2 Mexico

      3. 2.4.3 Argentina

      4. 2.4.4 Colombia

      5. 2.4.5 Rest of Latin America

Latin America Air Freight Industry Market Size FAQs

The Latin America Air Freight Industry size is expected to reach USD 1.04 billion in 2024 and grow at a CAGR of 4.22% to reach USD 1.28 billion by 2029.

In 2024, the Latin America Air Freight Industry size is expected to reach USD 1.04 billion.

Latin America Air Freight Industry Report Snapshots

Latin America Air Freight Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)