In this regard, ALTA is launching the unprecedented report “Route to Sustainability in Latin America and the Caribbean”, which presents progress, challenges and key strategies to understand how this region, with its particular characteristics, will be able to achieve its sustainability goals and become a benchmark in environmental matters.
Today, the sector represents 3.6% of the regional GDP and supports 8.3 million direct and indirect jobs, contributing 240 billion dollars to the regional economy. In addition, the Latin American aeronautical industry has made significant progress: while air traffic has grown by 40% in the last 10 years, emissions have only increased by 18%, thanks to fleet renewal, operational improvements and greater energy efficiency.
The report recalls that since 1970, the number of passengers transported in the region has increased 18-fold, from 18 million to more than 324 million in 2023, outpacing the global average growth rate of 14-fold. This progress highlights the essential role of aviation in regional connectivity and economic development.
An essential service with a strong commitment to concrete results
The airline sector has made significant progress in becoming more accessible to the population and also in achieving sustainability goals, demonstrating leadership and resilience in a challenging global context.
Since 2011, airlines in the region have reduced fuel consumption per passenger kilometer (RPK) by 28%, thanks to investments in fleet renewal, technological innovation and operational efficiency. In addition, the average age of fleets has been reduced by 18%, consolidating the region with fleets that are 37% younger than those in North America and 22% more modern than those in Europe.
While Sustainable Aviation Fuels (SAF) – with the potential to reduce CO₂ emissions by up to 80% – are a key action to achieve emissions reduction targets, the region needs a broader basket of measures to achieve this, including: improvements in air traffic management, route optimization and investments in sustainable infrastructure. These actions have already resulted in substantial reductions in emissions intensity, with only 4.8% of total global CO₂ emissions attributable to the region’s airlines between 2013 and 2023.
Additionally, the sector is exploring the potential of green hydrogen, electric and hybrid technologies, and market mechanisms to offset residual emissions. The region is also leading collaborative initiatives that bring together governments, industry and communities to create a favorable regulatory environment and promote the use of local raw materials in advanced fuels.
Although challenges remain—such as higher SAF implementation costs and limited infrastructure—aviation in Latin America and the Caribbean is proving that sustainable growth and accessible connectivity can coexist. The creation of collaborative investment funds and tax incentives is essential to transform this vision into reality.
"This study, supported by S&P Global Commodity Insight's knowledge and data, is a document that offers a detailed analysis of the region's unique characteristics, which differ significantly from other parts of the planet and therefore require specific approaches and tailored solutions to address sustainability-related challenges. In addition to highlighting the progress already made, this material provides a solid basis for engaging with authorities, aligning objectives and processes, attracting investments and implementing strategies that allow the sector to move forward in an integrated and sustainable way. By understanding local dynamics, we can effectively address climate challenges and create a development model that balances connectivity and respect for the environment, contributing to a greener and more innovative future for the region's aviation sector," highlights José Ricardo Botelho, CEO of ALTA.
Opportunities for regional leadership
With a strategic geographic position and abundant natural resources, Latin America has the potential to become a global leader in sustainable aviation. The region already has significantly younger fleets than those in developed markets and is investing in innovation to improve operational efficiency and reduce emissions intensity.
By balancing the challenges, aviation in Latin America will not only mitigate the impacts of climate change, but also strengthen connectivity and promote sustainable development over time. The report concludes that a collaborative approach between governments, companies and international institutions is essential to transform the sector and consolidate the region's position as a benchmark in sustainable aviation.
Source: ALTA.