Why Latam Airlines Pulled the Plug on Its Lima-Havana Route

Latam Airlines announced the cancellation of its Lima-Havana route, effective immediately. The decision, attributed to new airport tariffs imposed by Peruvian authorities, has raised questions about the sustainability of regional air travel, the economic viability of certain international routes, and the broader implications for tourism and trade between Peru and Cuba.

A Strategic Route Cut Short

The Lima-Havana connection was a strategic bridge between South America and the Caribbean. For years, Latam Airlines operated this route to cater to both leisure travelers seeking Cuba’s cultural richness and business passengers navigating Latin America’s growing interconnectivity.

However, the recent hike in airport tariffs at Jorge Chávez International Airport in Lima has made the route economically unfeasible. Latam cited “operational cost increases” as the primary reason for the cancellation, emphasizing that the new fees significantly impact profitability, especially on routes with thinner margins like Lima-Havana.

The Tariff Tangle: What Changed?

Peru’s airport authority, CORPAC, recently implemented a revised tariff structure aimed at modernizing infrastructure and improving services. While the long-term goals may be laudable, the immediate impact has been controversial. Airlines now face higher landing fees, passenger service charges, and security costs.

For Latam, which operates on tight margins and faces fierce competition from low-cost carriers, these increases were a tipping point. The Lima-Havana route, already challenged by seasonal demand fluctuations and limited cargo opportunities, could not absorb the additional costs without passing them on to consumers—something the airline deemed commercially unviable.

Regional Impact: More Than Just One Route

The cancellation is not an isolated event. It reflects a broader trend in Latin American aviation, where regulatory changes and economic pressures are forcing airlines to reassess their route networks. In recent years, carriers like Avianca and Aeroméxico have also trimmed international routes due to similar cost concerns.

For Cuba, the loss of a direct connection to Lima means reduced access to South American markets. Tourism, a vital pillar of the Cuban economy, could suffer as travelers face longer, more expensive itineraries. Meanwhile, Peruvian businesses with interests in Cuba may find logistics more complicated, potentially dampening bilateral trade.

Tourism and Trade: A Double Blow

Tourism boards in both countries are scrambling to assess the fallout. Havana, which has seen a resurgence in South American visitors post-pandemic, may experience a dip in arrivals. Travel agencies in Peru are already reporting cancellations and rerouting challenges for clients who had planned Cuban vacations.

Trade is also at risk. While the Lima-Havana route was not a major cargo corridor, it facilitated business travel and small-scale commerce. Entrepreneurs, academics, and cultural exchange programs relied on the direct link to foster collaboration. Its absence could slow momentum in these areas.

Latam’s Strategy: Retrenchment or Realignment?

Latam Airlines has been undergoing a strategic transformation since emerging from bankruptcy protection in 2022. The carrier has focused on streamlining operations, investing in digital infrastructure, and optimizing its route network for profitability.

Rather than stretching resources thin across marginal routes, Latam appears to be concentrating on high-demand corridors and partnerships that offer better returns. The airline has hinted at reallocating aircraft from the canceled route to more lucrative destinations in Brazil and Chile.

Industry Reaction: Mixed Signals

Industry experts are divided on the implications. Some view Latam’s move as a prudent business decision in a volatile market. Others worry it sets a precedent that could discourage airlines from investing in underserved regions.

The International Air Transport Association (IATA) has expressed concern over rising airport fees in Latin America, warning that they could stifle growth and reduce connectivity. In a recent statement, IATA urged governments to balance infrastructure funding with airline sustainability.

For passengers affected by the cancellation, Latam has offered rebooking options and refunds. However, alternatives are limited. Travelers now must route through Panama, Mexico, or the United States to reach Havana from Lima, adding time and cost to their journeys.

Travel agencies are advising clients to book early and consider flexible itineraries. Meanwhile, frequent flyers are voicing frustration over the loss of a convenient route that had become a staple for regional travel.