Air freight’s role in Latin America’s e‑commerce boom

August 18, 2025

Latin America’s air cargo sector entered a key phase in 2025, propelled by the rapid rise of e‑commerce in Brazil and Mexico. Strategic commercial investments, sizeable fleet enhancements, and record-breaking demand are converging to redefine supply chains and reinforce airlines’ roles as key logistics enablers in the region.

Local markets overview

Brazil’s massive scale, Mexico’s rapid consumer adoption, and Colombia’s strategic threshold capacity highlight three distinct but interlinked market dynamics:

• Brazil offers unmatched volume and infrastructure investments that set the bar for platform-led logistics strategy.

• Mexico boasts high annual growth, alongside structural underpinnings that support rapid logistics innovation.

• Colombia, via El Dorado, supplies a hub with capacity, connectivity, and operational maturity ready to support regional network expansions.

Airlines and logistics providers that calibrate their investments across these diverse markets, adjusting capacity and service models accordingly, stand to lead the next wave of air-enabled last-mile delivery.

world map of south and north america, with separation of panama canal, latin american countries in focus

MercadoLibre doubles down

Latin America’s leading e‑commerce platform, MercadoLibre, has announced a US$5.8 billion logistics-led investment in Brazil for 2025, a nearly 48 percent increase over its 2024 spend, along with a US$3.4 billion infusion in Mexico. These initiatives will support logistics, technology, fintech, and staffing, creating an estimated 14,000 new jobs in Brazil, expanding its workforce there to over 50,000 by year-end. Brazil now accounts for more than half of MercadoLibre’s revenue, highlighting its strategic importance to the company’s growth story.

This investment marks a shift: e‑commerce platforms are no longer simply endpoints in the supply chain; they’re architects of logistics infrastructure, including warehousing, fulfillment systems, and coordinated air transport.

Soaring air cargo demand in the Americas

The surge in e-commerce is evident in air cargo volumes:

• Global air cargo demand increased by 11.3 percent, with capacity up 7.4 percent, and yields now 39 percent higher than 2019.

• Latin American carriers led the pack, with demand rising 12.6 percent, capacity increasing 7.9 percent, and December alone showing a 10.9 percent growth.

• 11.2 percent demand growth and 10.6 percent capacity increase in January; 10.1 percent demand growth in April, again a regional high.

• Regional performance in May held up well, with demand up 3.1 percent and capacity up 3.5 percent, outpacing North American carriers during a time of global trade uncertainty.

These figures indicate more than recovery; they reflect the norm: structural growth tied to consumer demand for faster, cross-border online purchases.

Scaling capacity

In response to market demand, Avianca Cargo, along with its Mexican sister brand AeroUnion, has begun deploying A330-300 P2F (Passenger-to-Freighter) aircraft. Starting in mid-2024, one A330 P2F entered service, with four more expected to enter service this year.

These conversions yield a 60 percent increase in volumetric capacity, supporting expanded operations across routes linking Colombia, Mexico, and the U.S., particularly for perishables, oversized cargo, and emerging e-commerce shipments.

Avianca Cargo, with its six A330-200F freighters and AeroUnion’s additional P2Fs, now operates approximately 220 weekly freighter flights, supplemented by 1,800 passenger flights with belly cargo.

These moves reflect a strategic pivot toward air‑powered, time-sensitive shipping.

Air freight caught in the jet stream

With backing from e‑commerce giants and airlines scaling capacity, Latin America stands at the forefront of a logistics revolution. Three interlocking trends are propelling this transformation:

• Infrastructure-as-a-service: Players like MercadoLibre are heavily invested in physical and digital logistics infrastructure, signaling a long-term commitment to ecosystem control.

• Capacity-driven de-risking: Airlines are upgrading their fleets and increasing frequency ahead of demand growth, rather than reacting, which gives them flexibility for premium and express delivery.

• Market-financed scalability: E-commerce-driven volumes mean higher demand, which therefore justifies infrastructure spend; this, in turn, improves service standards and volume assurance across the board.

And IATA’s numbers support the narrative, demand is expanding. The question now centers on sustainability: can airlines keep pricing power and operational efficiency amid continued trade volatility and fuel cost variability? Willie Walsh’s recent commentary at IATA’s 2025 conference hints at caution, citing supply chain and tariff turbulence ahead.

But in the short term, the structural momentum is undeniable. Between May’s 3.1 percent regional demand uptick and MercadoLibre’s capital deployment, Latin America’s air cargo market is no longer playing catch-up; it’s setting pace lines for fast, quality shipping.

In short

Latin American air freight now stands at the convergence of e‑commerce-led investment, aggressive fleet expansion, and global-grade market momentum. In an era where consumers expect expedited delivery and platforms opt for vertical integration, airlines that invest strategically in capacity and service differentiation will be tomorrow’s regional supply chain leaders.