What measures are applied in Guatemala?

Home Business What measures are applied in Guatemala?
What measures are applied in Guatemala?

The increase in the fuel price Air travel is beginning to cause adjustments in the global industry, with airlines announcing cancellations, surcharges and modifications to their services to offset costs.

According to information from the agency EFEa german airline reported the cancellation of 20 thousand short-haul flights in the coming months. The company argues that the rapid rise in fuel prices has made several routes unprofitable.

Along the same lines, a French low cost airline announced the suspension of flights between May and June. The measure responds to the increase in the price of kerosene, influenced by the conflict in the Middle East, United States and Iran since February 28, which puts the economic viability of some routes at risk.

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Adjustments in rates and services in the United States and Mexico

Media United Statess report that several companies have begun to apply adjustments in airfaresespecially in complementary services. Among the changes are increases in the cost of seat selection and the charge for checked luggage.

In Mexicocompanies in the sector are already analyzing strategies to recover the impact of the increase in jet fuelwhich could be reflected in new surcharges or rate modifications in the coming months.

Panorama in Guatemala

In Guatemala, the impact of the increase in fuel prices is not yet generally reflected in the price of the air tickets. However, representatives of the sector point out that some airlines They have already taken measures to offset operating expenses.

According to Motty Rhodesexecutive director of the Guatemalan Airlines Association (AGLA), the companies continue to operate with reservations to avoid immediately passing on the increase to the end user. However, he warns that it is unknown how long they will be able to sustain this strategy.

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The increase in the international price of oil could increase aviation fuel, a cost that represents close to 30% of airline operations and that could impact air tickets. (Photo, Free Press: ShutterStock)
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In Guatemala, associated airlines have chosen to specific adjustments in servicesavoiding for now directly transferring the fuel increase to the price of tickets. According to Rodas, the measures that have been observed among the associates are:

Changes that are applying:

  • Increases in the cost of checked baggage
  • Adjustments to included baggage policies

Although these charges were characteristic of the low cost airlinesnow they are also beginning to be applied in traditional airlines in Guatemalaas is already being done internationally.

National companies remain waiting for the evolution of fuel prices and market behavior, without ruling out future adjustments in rates or services if cost pressure persists.

High occupancy and expectations

Although AGLA does not have statistics, Rodas comments that representatives of the sector agree that the levels of air occupation they remain high these days.

In addition, global events such as the World Cup are expected to boost traveler demand.

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