Welcome Competition and Low Prices


News from Panama / Tuesday, November 8th, 2016

wingo

In five years the airline market in Central America has transformed from being a market dominated by two major airlines, to one with new entrants, lower prices and greater connectivity.

The arrival of so called “low cost” airlines to the region has resulted in a progressive reduction in the prices of tickets to fly between Central American countries. Between 2011 and 2014 the average cost without taxes for travelling between Costa Rica and El Salvador ranged from between $400 and $500, while in 2015 it costs $391.

Nacion.com reports that “…In the case of Panama, tickets went from $400 to $500 to $350, on average. Copa, Avianca and Air Panama, and in December Wingo, have direct flights to this country, with prices starting at $200. Other destinations such as Honduras, Belize and Guatemala did not see any significant drop in price, according to data from the ICT; however, Wingo and Air Costa Rica advertised rates from $200 or ‘below market’ rates in the case of the Costa Rican airline, to Guatemala, where currently only Copa and Avianca operate direct routes.”

Taking into account the flights announced in the region for January 2017 by Air Costa Rica and from December 2016 by Wingo, there are “… 197 direct flights, of which 63 are by Copa to Panama, where there is connections with other destinations.”