October 21, 2021

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How has the Peruvian Aerospace Market behaved before and during the pandemic?

The statistics on the behavior of the Peruvian aviation market have already been issued by the DGAC, which reveals a lot of relevant information on how the market is moving and how it is likely to move in the short-term future.

Statistics of Passenger Behavior at National Level According to Airlines 2020
Despite the fact that there was a drastic drop in the number of passengers due to the effects of the pandemic. It has been seen that there was a rebound in charter flights that went from having a participation of less than 0.01% to having at least one to two digits in percentage participation. For this we will analyze month by month how this behavior occurred.

March 2020 – PRE PANDEMIC

Before the pandemic, it is possible that the main airlines such as LATAM Airlines had 63%, Sky Airlines followed in second place with 17% followed by, Viva Air with 11%, Star Peru with 6% and Avianca Peru with 2% .

Statistics of Passenger Behavior at National Level According to Airlines March 2020

Until March 2020, the Peruvian market was still strongly dominated by LATAM and Sky with a view to growth since it had exceeded the 15% that Peruvian airlines usually have, which are between second and fourth place. This happened when Peruvian Airlines was in the market where both Peruvian, Sky and Viva had between 15% and 12% of participation.

April 2020

Statistics of Passenger Behavior at National Level According to Airlines April 2020

Let us remember that as of March 15 the country was paralyzed and the flights for the month of April became 1.10% of what they were the previous month. In other words, the Peruvian market was reduced by 98.9%. A historical milestone since, despite not reflecting the true movement, for the first time LATAM had a 37% market share in more than 20 years and Sky in a second place with 24%, followed by Star Peru with 13%, Viva Air with 8% and Avianca Peru with 2%, this being the last month that would be part of the Peruvian aviation statistics. This month only 13,442 people were mobilized.

The amount of movement is greater than the following two months due to the humanitarian flights that took place this month.

May 2020

Statistics of Passenger Behavior at National Level According to Airlines May 2020

In the month only 8,719 people were mobilized, almost half of the previous month and in fact the month with the least movement of the whole year so far. Leaving the market placing LATAM in the ranking first followed by ATSA, which for the first time has a relevant percentage in the statistics of the Peruvian aviation market followed by Viva Air, Star Peru and Wayra with 9% having a relevant participation in the commercial aviation movement. It is followed by Saeta and Sky airline with 5% and 4% respectively.

June 2020

Statistics of the Behavior of Passengers at National Level According to Airlines June 2020

In June the movement was very similar to that of May, although with a notable greater movement by Viva Air. In this month the number of passengers transported was 8,872. From here, the behavior of the market changes as some destinations in the south and that allows destinations in the north to have a greater relevance. This month Wayra launches a new route to Punta Sal which, with its other charter flights, makes its passenger movement much greater.

In the same way, destinations in eastern Peru become protagonists due to MEDIF flights, which is why charter airlines such as Saeta and Atsa also achieve much more prominence in the market.

July 2020

Statistics of Passenger Behavior at National Level According to Airlines July 2020

From here we can already see the real behavior of the Peruvian commercial aviation market since on July 5, domestic flights were reactivated with restrictions in some provinces. In this case, LATAM Airlines Peru is left with 54% of the market while Sky and Viva grow to 19% and 15% respectively compared to months before the pandemic. It can be seen that there is already a marked trend that Sky, despite being in second place, could increase its participation and capture the market not from airlines with a similar market share such as Viva Air but from the LATAM market. In this month the number of passengers transported was 79,302, which is 6.47% of the market before the pandemic.

August 2020

This is definitely the most interesting statistic of all since it reveals how much the market has moved and despite the fact that 105,821 passengers were mobilized, which is 8.63% of the market before the pandemic, it already offers us a sample of how the market is moving and how it could look or show a trend as the volume of passengers grows

Statistics of Passenger Behavior at the National Level According to Airlines August 2020

The final report issued by the DGAC already shows a notorious trend in how the commercial aviation market for cabotage is behaving. It could be seen that LATAM Airlines Peru with 55% reduced its participation percentage and that Sky is gaining ground with 18% that is seen in each report issued by the DGAC. Likewise, in percentage, Viva Air maintains an average of 11% and Star Peru, with 8%, has not moved as a percentage.

We must take into account that although it is not a statistic of the normal number of passengers that Peru moves, the number of passengers is a sample to indicate how the market is moving and how Sky is gaining ground. It is very likely that the market will follow the same trend until it reaches the point where Sky could only grow if it brings in more planes and if Viva Air concentrates its efforts on strengthening its local market.

There is a very important factor that could define the future of the aviation and it is jetSMART since according to its strategy it could attract passengers from airlines such as Sky, Viva Air or Star Peru or attract from these and from LATAM. Strategies will play an extremely important role since the different product will decide what will make the market move in the future since rates are reduced in all airlines but not for products such as types of seats, chargers inside the plane, lighting, brand, interior and exterior design.

Conclusions

Line Chart of Commercial Airlines of Peru

In conclusion, the market is definitely moving and if everything remains the same in a year, the number 1 airline in Peru could change or the market could be dominated by two airlines instead of one. Only time will confirm what will happen and how the market will change with the entry of jetSMART.

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