Nelson Bocanegra

BOGOTA, (Reuters) – Latin American countries are increasing their taxes and tariffs aimed to the aviation sector. This is despite the fact that it faces losses due to the coronavirus epidemic.

According to the International Air Transport Association, (IATA), Argentina increased its taxes on ticket sales and Costa Rica is planning to increase the security tariffs at San Jose International Airport.

Willie Walsh, IATA Director General, stated that additional hikes would be implemented in El Salvador and Dominican Republic.

Walsh explained that the recovery of air traffic in the region is accompanied by a rising trend in taxes among the “so called partners” in the aviation industry. Walsh was speaking to Latin America authorities.

Walsh declared that “these are unacceptable in times of crisis” during the annual conference held by the Latin American and Caribbean Air Transport Association, ALTA (Bogota).

Walsh stated that Latin American airlines could suffer cumulative losses of $5.6 trillion this year and then fall to losses of $3.7B in 2022.

Walsh declared that “this crisis exceeds anything we’ve ever experienced.” The good news is, I believe the worst has passed and that we are on the path to normality.

IATA estimates that domestic market levels will be close to 75% at the end of 2011, but international travel will remain restricted to 22% due to continued measures to prevent the spread.

To prevent aviation’s recovery from stagnating, industry leaders have identified the importance of standardizing rules for international travel during the coronavirus pandemic.

Walsh stated that “the overall mood in the industry is I believe one of cautious optimism.”