Low-cost airlines thrive in South America, outpacing legacy carriers

Low-cost airlines are thriving in South America, significantly outpacing legacy carriers like Aerolíneas Argentinas and LATAM. These budget airlines, such as JetSmart and Flybondi, have gained market share by offering lower prices and adapting quickly to changing passenger demands. The South American airline market differs from developed regions, with less reliance on business travel and more economic volatility. This environment allows low-cost carriers to operate flexible point-to-point networks, catering to a growing, price-sensitive middle class. Management strategies have also played a key role in the success of these airlines. Companies like Azul and JetSmart have innovated and expanded their routes, capitalizing on opportunities created by the pandemic to strengthen their positions in the market.