The outlook for the Latin American Airlines sector is stable for 2015, according to Fitch Ratings. Fitch Ratings expects credit profiles for main carriers to remain stable in 2015 based on their capacity to preserve stable margins and maintain balance in capex levels and cash flow generation. Rational capacity management is projected to prevail in the sector during 2015, according to Fitch. Most players are expected to touch single-digit capacity growth rates in 2015.

Fitch’s view of specific regional market trends in 2015 considers that surplus and irrational competition risks should remain low in the Brazilian domestic market, with the two market leaders continuing to focus on improving profitability. The fragmented nature of the Mexican market could lead to some weakening of credit profiles in that market.