RIO DE JANEIRO, June 7 (Reuters) – LATAM Airlines Chief Executive Roberto Alvo said the airline industry may need to cut capacity further if elevated fuel prices persist into 2027, warning that carriers with weaker balance sheets and greater exposure to price-sensitive traffic will face mounting pressure.
“If this extends for longer, I think that the industry will have to adjust capacity further,” Alvo told Reuters in an interview on the sidelines of the International Air Transport Association’s annual meeting in Rio de Janeiro.
He said airline funding costs were already rising and aircraft and engine supply-chain problems were likely to persist for two or three years.
(Reporting by Rajesh Kumar Singh and Gabriel Araujo in in Rio de Janeiro, editing by Manuela Andreoni)
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