Avianca Targets Strong Growth in Colombia’s Domestic Market
Avianca CEO Frederico Pedreira recently highlighted the Colombian airline’s optimistic outlook for its domestic market, projecting a significant increase in passenger numbers. The carrier expects to transport 19.3 million domestic passengers in 2024, marking a 20% increase from the previous year and a 32% rise from 2019 levels.
This growth is fueled by an influx of new travelers within Colombia, with surveys indicating a rise in air travel among locals. Avianca, leveraging its robust domestic network, notes that 58% of its seating capacity is dedicated to domestic routes, with the remaining 42% serving international destinations, primarily the United States.
A striking statistic from Avianca’s internal surveys reveals that 14% of its domestic passengers in 2023 were first-time flyers, underscoring the airline’s success in making air travel accessible to a broader demographic. This development is a testament to Avianca’s competitive pricing strategies and flexible product offerings, which have been critical in attracting new users who had not previously considered flying as a viable travel option.
The recent closures of Colombian low-cost carriers Viva and Ultra Air have left gaps in the domestic travel market that Avianca has swiftly capitalized on. These changes have allowed Avianca to enhance its domestic connectivity and service offerings.
Avianca’s emergence from a Chapter 11 restructuring in late 2021 has also played a pivotal role in its current strategy. This financial reorganization has enabled the airline to streamline operations and maintain cost-efficiency, crucial for offering affordable travel options to domestic passengers. For instance, Avianca has introduced a basic economy fare that excludes a carry-on bag, targeting cost-conscious travelers who do not require extensive luggage capacity for short trips.
Interestingly, nearly 70% of Avianca’s domestic passengers opt not to bring a carry-on, preferring to travel light with just a personal item. This trend reflects a deeper understanding and acceptance of Avianca’s product offerings among Colombians, particularly those traveling on shorter domestic routes such as from Bogota to Medellin.
The airline continues to expand its domestic route network, with recent launches including services from Bogota to Arauca and Quibdo, operated by Airbus A320 aircraft. These additions bring Avianca’s total number of domestic routes to 40, further solidifying its footprint in Colombia’s aviation market.
As Avianca focuses on maintaining competitive pricing and efficient operations, it remains committed to facilitating accessible and affordable air travel across Colombia. This strategy not only supports the airline’s growth but also contributes to the broader economic and tourism development of the country, as noted by Sergio París, Colombia’s director of civil aeronautics.
With a clear focus on enhancing regional connectivity and supporting first-time flyers, Avianca is poised to continue its trajectory of growth within Colombia, playing a vital role in the expansion of the country’s air transport infrastructure and accessibility.
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