Source: ALTA

Within the framework of already defined global objectives, the study highlights that Latin America and the Caribbean possess unique structural conditions that guide the pathways for progress.

The transition demands coordinated action among airlines, operators, regulators, and other key sector stakeholders to enable the necessary conditions for its implementation.

Moving forward entails combining various measures tailored to the region’s reality, while avoiding negative impacts on connectivity, accessibility, and development.

Against the backdrop of the global challenge to advance toward net-zero emissions by 2050, the Latin American and Caribbean Air Transport Association (ALTA)—with technical support from ICF as a specialized consultant—presents the study *Net Zero Aviation in Latin America and the Caribbean: Pathways and Trade-offs*. This report analyzes various alternatives for progressing toward this goal.

“There is a firm commitment from the industry to achieve Net Zero, but there is also a recognition that Latin America and the Caribbean face distinct structural conditions. Therefore, it is fundamental to rigorously analyze the region’s opportunities and challenges in order to define a unique roadmap—one that is realistic and sustainable over time—bearing in mind that aviation is not a luxury; it is an engine of economic development. It contributes 3.6% to the GDP and supports 2.9% of employment in this part of the world. Ensuring its growth and sustainability is key not only for the industry but also for the competitiveness and connectivity of our countries,” states Peter Cerdá, CEO of ALTA.

In this regard, ALTA conducted the study in collaboration with ICF International, a consulting firm specializing in transportation, sustainable aviation, data analytics, and strategies for airlines and tourism.

The process involved a review of existing policies and targets regarding net-zero emissions, as well as country-by-country data collection, including technical visits designed to maximize the acquisition of authentic data. Additionally, meetings were held with all interested parties: national governments, civil aviation authorities, aircraft manufacturers, suppliers, and other stakeholders. Based on this information, reliable projections and scenarios extending to 2050 were developed.

The analysis conducted highlights the following key findings:

  • Fleet renewal stands out as one of the most effective measures, enabling significant improvements in fuel efficiency, operating costs, and environmental performance. The study demonstrates that several airlines in Latin America and the Caribbean have made significant strides in this regard: currently, 38% of capacity is operated using new-generation aircraft—surpassing both Europe and the United States (34%)—with investments already totaling US$40 billion, representing 1,100 new aircraft.
  • Operational efficiencies represent the most immediate and cost-effective measure, offering potential emission reductions of up to 11%. This encompasses route optimization, reduced ground times, and the use of digital technologies. However, the success of this pillar hinges on coordinated action among governments, airports, and air navigation service providers.
  • Although Sustainable Aviation Fuels (SAF) represent the most powerful tool for the long term, their implementation faces significant barriers. SAF is between 3 and 12 times more expensive than conventional fuel; consequently, widespread adoption without government incentives could increase per-seat costs by US$43 and reduce air traffic by 30%. The region possesses the potential to become a major player in the global SAF industry thanks to its abundant local feedstocks; however, scaling up production will require supportive policies, infrastructure, and mechanisms to minimize the cost impact on passengers.
  • A major finding of the study was the quantification of the potential held by Latin America and the Caribbean within the carbon credit market, driven by the region’s diverse natural ecosystems—many of which are of critical importance to global environmental well-being. Between 2020 and 2024, the region issued 23% of global credits, despite accounting for only 6.7% of emissions. However, work is required to ensure that these nature-based solutions meet the international standards mandated by the aviation industry. This serves as a complementary pathway for addressing those emissions that cannot be directly reduced.

In light of these points, the study highlights that the aviation sector in Latin America and the Caribbean has already made concrete strides in fleet modernization; and that operational efficiency—bolstered by coordinated decision-making and well-articulated regulatory frameworks—stands out as one of the most immediate and cost-effective tools for reducing emissions, without overlooking the potential of other alternatives that require more time and specific conditions for their implementation. The paramount objective is to lay the foundations for a progressive, inclusive, and sustainable transition for regional aviation, through collaborative efforts involving all stakeholders within the air transport ecosystem.

For more details about this study, please visit the ALTA website