There is a lot of second-guessing in the Latin American airline industry. Just a few years ago, the region’s airlines were thriving—aircraft could not be added fast enough and profitability appeared to be a given. This led to a wave of consolidation that created three large, transnational airline companies—LATAM Airlines Group, Avianca Holdings and Copa Holdings—that sought to take advantage of Latin America’s rapid growth. Airlines from around the world ...

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