JetSMART trims 2026 capacity growth outlook amid costly fuel

what happened

South American low-cost carrier JetSMART has cut its forecast for 2026 capacity growth to around 14% against a year earlier. Elevated fuel prices are making the company more careful about expansion, CEO Estuardo Ortiz told Reuters on Tuesday.

Ortiz warned that growth could also be restrained next year if fuel stays expensive. Even so, the airline keeps adding aircraft in its main markets and believes there is still room to gain share in South America.

JetSMART recently received approval to run passenger and cargo flights inside Argentina, plus onward international legs, a right known as cabotage. Ortiz said this will not spark a big push there, but it will let the carrier fly some routes more efficiently, for instance by extending a Santiago to Buenos Aires route to another Argentine city or Brazil. The company is also weighing Venezuela, where it has sought route permits, though it has no firm launch plan. Codeshare cooperation with American Airlines is set to widen through 2027.

why it matters

The comments show how fuel costs are shaping airline strategy in Latin America. Carriers are slowing growth and getting more out of existing planes, crews and partnerships to protect margins, so fuel-price swings remain a key pressure point on profitability for the sector.

market impact

Jet fuel: high prices squeeze airline margins and slow the growth of seat capacity

tags

instruments