Weigh in all, the 2024 could be historic for Ecuador

Despite all the bad news, the 2024 couldía ser histórich for aviationócommercial number of Ecuador, themselvesún informó HIGH.

The úlately there has been plenty of news, but not the good ones that IáWe like to publish on this blog, but bad news from Aerolílines that are leaving or others that reduce frequencies have been the cover of this space, but everything seems not to beá as bad as it can beíwe love to think.

A recent report from tráfic shared by HIGH, the Associationón Latin American and Caribbean Transport Aéreo, mostró a high optimism for what to beíto is 2024, QUALIFICATIONSáeven from: histórico.

What to beíin aviationón ecuadorian east 2024

The 2024 is emerging as año histórich for aviationón in Ecuador, with a pronóstico of récord in the núinternational passenger grouper. During the first four months ofñO, have already registered 1.55 millions of passengers traveling to and from the countryís, which represents an increase in 8% in comparisonón with 2019, than to maintain the trend, to implyíto the largest núgroup of international travelers in the history of the countryís when closing the añO.

The aviation marketóA commercial market in Ecuador had a total demand for 8.6 million passengers in 2023. The sun marketéstico representó the 45% of the total market. This makes Ecuador the eleventh largest market.ás big from Latinoamérich with 11 million total seats offered. With an average of 78% of occupationón.

Routes and airílines that Ecuador has lost in the úlast months

The transportation sectoréprisoner in Ecuador has experienced moderate growth since 2008 until 2023. With a Compound Annual Growth Rate (CAGR) of the 2.7% at the sun marketéstico and 4.2% in the international market.

On 2023, The núgroup of passengers on sun routeséI went up the stairsó a 3.8 millions, 46% más of the 2.6 million in 2008. similarly, the tráI'm international I grew upó from 2.5 million to 4.7 millions of passengers in the same período, I feel the Quito route – Bogotaá the one with the highestáI work in the international market with más de 603 thousand passengers.

This growth of theáI'm theéreo is not only positive for the aviation sectorón, but alsoén has a significant impact on tourism and the economyíto ecuadorian. Transportation toéreo actúas a catalyst, generating new business opportunities, investments and creationóemployment no..

Sayún HIGH, pese a la reducción of the general offer in frequencies and airídenies, There are several actors that drive growth and status.ístatic, until now, positive:

• The State Agenda: The Ecuadorian government has implemented a strategy that recognizes aviationón and tourism as essential sectors for socio-economic developmentópa's friendís.
• Reductionótax number: EcoDelta and Potencia Tur taxes have been reducedístic, which has allowed rates más competitive and has encouraged passenger demand.
• Better connectivity: I decreased itón cost has allowed airlinesíneas offer más routes and frequencies, improving pa connectivityís with the rest of the world.

Although it grows, there are many challenges ahead. Despite this positive outlook, aúno challenges leftíthose to overcome:

• High operating costs: The operating costs in Ecuador are considerably más higher than in other countriesíses of the regionón, which can affect the viability of the aerolílines and competitiveness of the sector.
• Passenger rights: There are some vacílegal in relationón with passenger rights, such as the right to withdraw from the trip until 72 hours before the flight, that can generate uncertainty in planningón of the aerosolsídenies.

When comparing operating costs in Ecuador with other key markets in the regionón like Chile, Brazil, México and Panamá, a clear competitive disadvantage is observed for Ecuador. For instance, perform an operationón international in Ecuador is, on average, almost three times más expensive than in Brazil and Chile. This cost difference not only affects the viability of airlines.ídenies, but alsoén may have long-term consequences on connectivity toépa areaís. High costs can limit connectivity options for passengers and negatively affect tourism and commerce, That is why it is necessary to address the challenges in time.

Although there are challenges to face, the future of aviationón and Ecuador looks bright, although the negative news from this toñor point to the opposite. The fatheríitsá on the right path to becoming a regional benchmark in air transportation.éreo, promoting tourism, in economicsíand the well-being of the populationón.

Main airínea

As for the aerosolsíneas máimportant companies operating in Ecuador, during the 2023 The list was the following:

It should be remembered that Equair no opera más since September 2023. We will wait until the closing of thisño to see cómy evolutionó our aviationón despite the challengesíyou have to have less airílines and frequencies brings to the market.