Latin America: New Aircraft Orders Confirm Region's Strategic Value

The recent disclosure of a firm order by the Abra Group — a major player that controls Avianca, Gol and Wamos— for 50 A320neo Family aircraft and five A350-900s is significant for more than just its size; it is also a powerful testament to the central and growing importance of the Latin American region in the global aerospace industry. This is a region whose potential is being realized through smart investment in efficient aircraft, which is ensuring the profitability of airlines.

Latin America is not just a peripheral market. It is one of the world's fastest-growing aviation markets, with growth reaching 7.6% from July 2024 to July of this year according to IATA. This growth is creating enormous demand, driven by a unique confluence of economic and demographic factors. A rising middle class — expected to reach 490 million people by 2043 — is fuelling both domestic and international air travel. This demographic shift is directly driving demand for new aircraft, maintenance and training. The air transport sector is already a powerhouse, supporting an estimated 8.3 million jobs and contributing $240 billion to the economy across Latin America and the Caribbean.

The Abra Group's choice of aircraft in this booming market highlights a clear strategy focused on efficiency and connectivity. The five A350-900s confirm the group's strategy of improving connectivity to new destinations in the Americas and Europe. The A350 is the most modern widebody aircraft, offering advantages of 25% in terms of fuel burn, operating costs, and CO₂ emissions. This efficiency makes long-range travel more accessible for passengers in Latin America, ultimately allowing for more people to travel.

The addition of 50 A320neo Family aircraft will further strengthen the Group's regional network. With their new-generation engines, the A320neo Family delivers 20% fuel savings compared to previous-generation aircraft. This forms the backbone of efficient, high-frequency operations. Furthermore, the inclusion of the state-of-the-art Airspace cabin, featuring 60% more overhead storage space with XL bins, demonstrates a commitment to enhancing the passenger experience. It also reduces bin crowding and the need to check bags at the gate, providing a more relaxed boarding experience for passengers and cabin crew alike.

Latin America is much more than just a sales territory: it is an economic driver and a centre of aerospace manufacturing. It is also a source of critical talent and a key partner in building a more efficient future for global aviation.