Latin American Airline Groups Battle for Regional Dominance
A significant shift is underway in the Latin American airline industry as Sky Airline nears a potential acquisition by the Abra Group, a holding company that also owns Gol and Avianca. The deal, currently awaiting approval from competition authorities, signals an escalating competition with Latam Airlines for market leadership across the region.
Both Abra Group and Latam are substantial players. In 2024, Abra Group reported revenues of $5.282 billion,carrying 37.8 million passengers with a fleet of 318 aircraft to over 150 destinations in roughly 25 countries. Latam, meanwhile, generated $12.833 billion in revenue, transporting 82 million passengers with a fleet of 347 aircraft serving 163 destinations across 31 countries.
The competitive landscape varies considerably by country. Latam currently holds the leading market share in Brazil (40%), Chile (64%), and Peru (65%). Abra, through its subsidiary Gol, is Latam’s primary competitor in Brazil, holding approximately 30% of the market. While Abra currently lacks a strong foothold in peru and Chile, the acquisition of Sky Airline could position it to challenge Latam’s dominance in those markets, pending regulatory approval.
The battle for market share is particularly intense in Colombia and Ecuador, where Latam holds second place.In Colombia, Avianca leads with around 45% of the market, while Latam has a 27% share. In Ecuador, Latam holds 45% of the market, but Avianca maintains the leading position, though its exact market share remains undisclosed. Notably, Latam has yet to fully establish its operations in Central America, leaving an opening for competitors.
This evolving dynamic highlights a clear division: Latam currently enjoys strong leadership in several key markets, while Abra Group, bolstered by the potential addition of Sky Airline, is poised to aggressively compete for regional supremacy.
