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INSIDER

As passengers return to the airports in
Buenos Aires, these are some of the fresh,
appealing stores that await them.

Recovery slower than expected in Latin America;

uncertain prospects for 2022

John Gallagher reports from Buenos Aires

The economic outlook in Latin year. But again, pre COVID traffic was which is doing its best to reduce costs
America for 2022 is very unclear. 2.39 million for the first two months of and make their structures leaner and more
The COVID-19 pandemic and the 2020. efficient. Booming raw material prices
uncertain outcome of the Ukrainian war has In Chile, 953,600 international and agricultural exports will probably be
led analysts to be guarded with forecasts passengers used the Chilean airport system, a short-term fix but the medium and long
and predictions. When combined with the up 126.9% on 2021 but more than 50% term is very unclear. The next few months
forthcoming Brazilian presidential elections down on 2.1 million in 2019 and 2.01 are vital in the fight against inflation, but
in October, rampant inflation in Argentina, million in 2020. some pundits predict it could rise to 65% in
a new, comparatively youthful, president in Passenger traffic in Lima’s Jorge the short term.
Chile and a relatively new (but significantly Chavez Airport showed similar trends: The agreement with the IMF has given
older) one in Peru, observers are cagey 2.5 million passengers used the airport the Foreign Exchange market a degree of
when predicting what will happen this year. during the first two months of this year, up stability with the official USD rate coming
The pandemic is not over in Latin from 1.1 million during the same period in at 115 pesos. The grey market rate has
America and many restrictions remain in last year, but way short of the 4.5 million fallen from 220 to 200 as a result of the
effect throughout the continent. Air travel is recorded in 2020. IMF accord. But residents and businesses
still a long way below where expected and Fortunately for Argentina, the still face restrictions when seeking to
the major airports of Sao Paulo, Buenos country was able to negotiate a last-minute acquire foreign exchange and this will
Aires Ezeiza, Santiago de Chile and Lima agreement with the International Monetary prove to be a restriction on international
are still far from pre-pandemic levels. Fund to reschedule its outstanding US$45 travel in the short and medium term. With
Only Mexico is seeing strong passenger billion in payments and avoid a default on international air travel still operating at
throughput with Cancun now above sovereign debt. Repayments will now begin reduced levels, the price of air tickets
pre-pandemic levels and Mexico City in 2026 and finish in 2034. remains high in relative terms and tickets
recovering strongly. But the agreement is accompanied to the USA and Europe cost twice the pre-
The two Buenos Aires airports, by only vague promises from President pandemic level.
Ezeiza and Aeroparque, combined to reach Alberto Fernandez with no clear economic With passenger traffic still below
757,000 passengers for the first two months recovery plan, and inflation remains initial expectations, travel retail continues
of the year, more than double last year’s above 50% per annum. The fiscal deficit to suffer. International traffic at Ezeiza
joint total of 348,000. But they significantly remains high and many public services are and Aeroparque remains at low levels and
trail the 2.37 million and 2.1 million subsidized by the Federal Government. sales are struggling, although average sales
passengers of 2019 and 2020. Unemployment is reportedly falling but tickets are reportedly ahead of pre-2019
In Sao Paolo Guarulhos, international most new jobs appear only in federal levels.
pax reached 1.36 million for the first two and regional government with little The panorama in Brazil is also shaky.
months of the year, up from 458,000 last contribution from the private sector, October elections are a factor in most

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