Air Canada has expanded its Latin America network as cargo traffic grows across the region. The additional capacity is welcome, but airport constraints, infrastructure work and landside disruption threaten to limit the gains before they become durable.
More airline capacity enters the market
Air Canada resumed service to Santiago and Lima, ending a three-year absence from Peru. The Santiago operation includes four weekly nonstop flights from each of Montreal and Toronto, using B787-9 aircraft. Air Canada is the only carrier offering direct service on those routes.
Its return to Lima consists of twice-weekly B787-9 flights from Toronto and Montreal. The airline also deployed the aircraft on its Bogotá route, increasing capacity from the A330 previously used.
Air Canada has also extended its Montreal–Guatemala City A330 operation from a seasonal launch in October 2025 to year-round service.
International interest extends beyond Air Canada. Ethiopian Airlines is considering cargo flights to Buenos Aires using traffic rights that include cabotage, while open skies policies in Argentina and Ecuador are helping attract international carriers. Emirates has expanded its Buenos Aires freighter operation to seven services a week and registered 18% growth in exports from the region during January–September.
Demand is moving in the same direction. IATA reported that Latin American cargo volumes grew 3.6% in the first half of the year. ALTA data showed annual growth of 9.8% in Brazil and 8.4% in Colombia through July. In August, tonnage increases reached 11.8% for Brazil and Colombia, while Argentina led the region with 17% growth.
More aircraft are not the same as more effective capacity
The central constraint is that airline capacity and ground capacity are not expanding together. ALTA CEO Peter Cerda warned that 54% of airports in the region already show signs of saturation. He said future growth depends heavily on governments and airport authorities accelerating infrastructure investment.
Sao Paulo’s Guarulhos, Bogotá, Lima and Santiago were identified as airports needing expansion or modernization. That work extends beyond runways and terminals. Aircraft also need handling space, cargo storage and reliable road connections to move freight beyond the airport.
The wider market outlook supports continued investment. Mordor Intelligence projects South America’s freight and logistics market to grow from $270.18 billion this year to $348.78 billion by 2031. Yet Maersk’s October market update described landside operations as being at a crossroads because traffic growth is stretching capacity and established operating practices.
Airport operator Servicios Aeroportuarios Andinos is responding with investment. It has spent more than $1 million at Lima’s Jorge Chávez Airport to improve import and export capabilities and is considering doubling capacity by 2030. SAASA has also begun constructing a second cargo terminal at Madrid’s Adolfo Suárez Airport and is examining ramp and cargo opportunities in Argentina, Chile and Colombia.
Ezeiza shows how quickly capacity can disappear
Infrastructure work at Buenos Aires Ezeiza is already restricting operations. Rehabilitation of the second runway involves work on its intersection with the main runway until 11 November. The usable length falls from 3,300 metres to 1,850 metres, restricting widebody operations.
Atlas Air, American and Lufthansa have suspended Buenos Aires flights for the duration of the work. According to Rotate, Ezeiza capacity has been reduced by some 80%.
That reduction matters even when demand is strong. A freighter unable to use its intended airport may need to divert or reposition, potentially adding time and cost. Scheduled aircraft movements therefore overstate the network’s effective capacity when infrastructure cannot support them.
Landside disruption creates a separate bottleneck
Road and port problems can remove capacity without affecting the flight schedule. An indefinite trucker strike has disrupted operations at Chile’s San Antonio port since 29 October, amid disputes over fuel costs and toll expansions.
The road connecting Mendoza in Argentina with Chilean ports has also faced repeated and lengthy closures this season, resulting in severe delays. Other port operations across Latin America have remained stable, according to Maersk, but the disruptions show how quickly a local bottleneck can affect an international cargo plan.
De La Guardia, Maersk’s head of digital marketing and digital sales, said relationship-based exception management works when volumes are low, routes are familiar and few scenarios require attention. Under pressure, however, that approach breaks down as market conditions change. Her reference to a McKinsey study also pointed to stronger infrastructure, additional trade corridors and more integrated supply chains.
Decision checklist for freight operators
Before accepting a route or delivery commitment, check each layer of the operation rather than relying on the flight schedule alone:
- Aircraft capacity:** Confirm the frequency, aircraft type and seasonal service pattern available on the route.
- Airport capacity:** Verify runway restrictions, handling conditions and the availability of expansion work at the intended airport.
- Port and road capacity:** Check for strikes, prolonged closures and delays along the route connecting the airport or port with its cargo origins and destinations.
- Contingency options:** Identify alternative gateways, handling arrangements and transfer routes before disruption occurs.
- Delivery buffer:** Avoid promising a final delivery window that leaves no room for airport work or landside delays.
This approach separates the timetable promise from the practical capacity needed to fulfill it. More flights can create useful options, but only if airports, roads and cargo-handling systems can support the freight they attract.
What to watch next
The next test is whether infrastructure investment can keep pace with traffic growth. Air Canada’s expansion and interest from other international carriers suggest that airlines see room to add service. The gains for shippers will depend on whether airports can handle additional aircraft and whether road and port links remain dependable.
Near-term indicators include the completion of Ezeiza’s runway rehabilitation, progress at Lima and the other airports identified by ALTA, and the duration of the San Antonio strike and Mendoza road closures.
For airlines and cargo operators, rising traffic creates an opportunity to gain volume and improve schedules. For shippers, it brings more potential routes but also greater exposure to bottlenecks. Treating infrastructure schedules as part of the cargo plan is no longer optional; it is part of managing capacity effectively.
Key takeaways
- Air Canada has restored and expanded several Latin American routes, supporting additional regional capacity.
- Cargo volumes are growing, but ALTA reports signs of saturation at 54% of regional airports.
- Ezeiza runway work has reduced capacity by some 80% and prompted several carrier suspensions.
- Shippers need separate contingency plans for flight, airport and landside constraints.
Frequently asked questions
Which Latin American destinations did Air Canada restore or expand?
It resumed Santiago and Lima service and extended its Montreal–Guatemala City operation from seasonal to year-round.
How congested are Latin America’s airports?
ALTA says 54% of airports in the region already show signs of saturation.
Why have some airlines suspended Buenos Aires flights?
Runway rehabilitation at Ezeiza reduces the available runway length to 1,850 metres, restricting widebody operations. Atlas Air, American and Lufthansa suspended flights during the work.
What other disruption is affecting regional cargo?
An indefinite trucker strike at Chile’s San Antonio port and repeated closures on the Mendoza road to Chilean ports are creating delays.