Low-cost airlines are developing strongly, and Latin American aviation capacity reached a record high in June!
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Civil Aviation Resources Network, June 20, 2025: According to Aviacionline, in June 2025, commercial aviation in Latin America showed remarkable vitality, with scheduled seats reaching a historic 41.2 million. This figure increased by 4.1% compared with the same month in 2024, reflecting the operations of 154 airlines at 531 airports in the region.
Although full-service airlines (FSC) still account for 60% of the market share, the main driver of capacity expansion is low-cost airlines (LCC). LCC capacity increased by 6.1% year-on-year to 16.4 million seats, twice the growth rate of FSC. This trend is redefining the competitive landscape and driving down fares, benefiting passengers.
In terms of countries, Latin American markets show different dynamics. Brazil remains the largest market, with 11.6 million seats and a solid growth of 10.5%. However, Argentina's expansion was the most significant, with a year-on-year surge of 14.8% in capacity, adding more than 288,000 seats. This strong growth, driven by open skies policies and an aggressive LCC strategy, contrasts with the situation in Colombia, where the domestic market contracted, with 183,000 seats lost, as a direct consequence of the cessation of Viva Air and Ultra Air flights in 2023, a gap that has yet to be fully filled by the remaining operators.
Why are LCCs growing so fast in Latin America?
The low-cost model is thriving in the region, thanks to several factors. They operate fleets that are typically made up of a single aircraft type (usually the Airbus A320 family or Boeing 737) to reduce maintenance and training costs. They maximize aircraft utilization through high frequencies and short turnaround times. In addition, direct online sales and charging for additional services allow them to offer lower base fares, thereby attracting new passenger groups.
Among the major airlines, LATAM Airlines Group consolidated its leadership position with an 8.2% increase in capacity to 8.3 million seats. LATAM has shown a solid position in key markets such as Brazil, where domestic capacity increased by 13% in May.
JetSMART is a clear example of LCC progress, with capacity growing by 32.2%. This growth was driven by the addition of high-density Airbus A321neo aircraft and expansion in the Argentine domestic market, making it the second largest airline. JetSMART CEO Estuardo Ortiz recently highlighted progress in Argentina's regulatory modernization as a "key growth factor".
In Brazil, GOL Airlines added 610,000 seats this month, up 21.5% from the previous month. GOL recently completed its financial restructuring under Chapter 11 bankruptcy in the United States, and with its fleet optimized, GOL is now better able to execute its expansion plans.
This dynamic landscape has also reshaped the ranking of busy airports. São Paulo's Guarulhos International Airport (GRU) surpassed Bogota's El Dorado Airport (BOG) to become the region's main hub with 2.31 million seats and 10.7% growth. The largest increase among the major airports was Buenos Aires (Aeroparque and Ezeiza combined) Airport, where total seats increased by 31.1% from June 2024.
International traffic, which accounts for 35% of the total, also grew by 5%. North America remained the main destination outside the region, with 6.6 million seats. However, traffic to Asia-Pacific grew the strongest, up 65%. Seats for intraregional travel increased by 550,000, up 10% year-on-year, signaling stronger tourism and economic ties within Latin America.