Will tickets drop in 2026, after the fall of the dollar and oil? This is what ALTA and IATA say
The fall of the dollar and cheaper oil could alleviate the operating costs of airlines in Latin America and the Caribbean in 2026. However, that financial respite does not necessarily mean that passengers will pay less for their airline tickets.
TL;DR
- Lower dollar and oil prices could reduce airlines' operating costs in 2026.
- Approximately 30% of ticket prices in Latin America are influenced by external factors like taxes, airport fees, and regulations.
- Fuel expenditure for the sector is forecast to decrease slightly in 2026.
- Demand, capacity, and airlines' focus on recovering post-COVID-19 margins are key factors affecting ticket prices.
- Airport fees and infrastructure costs continue to pressure prices upwards in the region.
- Peru's extension of an airport fee has impacted the competitiveness of its hub, while Argentina's deregulation policy has boosted competition and lowered prices.
- Global airlines are projected to record record profits in 2026, but covering the cost of capital remains a challenge for the industry.