No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveEconomic Turbulence Grounds Flights

Economic Turbulence Grounds Flights

Always a volatile industry to begin with, recent economic turbulence has local airlines more topsy-turvy than ever.

Last week, Central American carrier TACA announced it would lay off an unspecified number of workers and cut back on flights due to the economic downturn. Meanwhile, however, U.S.-based Continental Airlines announced it would add more flights to Costa Rica from hubs in Houston and Newark, New Jersey.

“Mainly, it’s based on consumer demand,” said Garlos Granados, sales manager at Continental Airlines Costa Rica.

While the number of tourists flying into Costa Rica “has picked up a little” over the last month, Continental’s growth plans should not be taken as a sign of an industry wide rebound, according to Alexi Huntley, Sales and Marketing Director at Nature Air.

“The fact of the matter,” Huntley said, “is that the overall market is shrinking.”

Huntley said Nature Air had seen about a 10 percent decrease in passengers in January compared to the previous year, causing the company to reduce the number of flights offered and lay off about 3 percent of its work force.

TACA officials estimated that the company had seen a drop in passengers between 5 and 10 percent in the same period, with tourism traffic in Guanacaste being the hardest hit. However, communications coordinator Sofia Valverde said the company’s 1,300 employees in Costa Rica would not be facing job cuts, for now.

The layoff “at the moment only affects workers in Nicaragua, Guatemala and Honduras,” Valverde said. “It will not affect TACA Costa Rica or (TACA affiliate) SANSA, for now.”

Last week, DanielOduberAirport in Liberia announced that tourist arrivals had increased 3.5 percent in 2008 to 420,000, up from 405,000 in 2007. But Huntley said arrivals for the Liberia airport, a better indicator than JuanSantamaríaInternationalAirport near San José of tourist numbers because it caters almost exclusively to vacationers, were down 9 percent in January 2009 compared to the same month last year.

With the deep discounts being offered, however, airline officials expressed optimism that tourists would respond.

“The market is really price sensitive,”  said SANSA business manager Cesar Solís, citing the success of the airline’s new Web site and cheap fares.

“I think it’ll get better,” agreed Huntley. “People are going to want to live their lives again. Ironically, there’s never been a better time to travel.”

 

Trending Now

Carlos Alcaraz Parts Ways with Longtime Coach Juan Carlos Ferrero Ahead of 2026 Season

In a move that has sent ripples through the tennis community, world No. 1 Carlos Alcaraz announced on Wednesday that he has ended his...

Costa Rica Picnic Festival 2026 Lineup Headlined by Christina Aguilera, Maná and Nodal

Picnic Festival organizers revealed the lineup for the 2026 edition yesterday, setting the stage for two days of live music at Centro de Eventos...

Honduras Sticks with Nighttime Border Shutdowns, Complicating Travel for Visitors

Travelers heading to Honduras face ongoing hurdles at land borders, where officials shut down crossings each night. The country's immigration service halts operations for...

Costa Rica’s La Vuelta returns with international teams and a descent into San Isidro

Every December Costa Rica celebrates its strong bicycling roots with La Vuelta, a 10-stage cycling race that challenges riders with its mix of hill...

The Five Latin Athletes Who Made Headlines in 2025

Whether because of their successes or their defeats, five Latin American athletes drew the spotlight in 2025. Lionel Messi: no expiration date At 38, he once...

Costa Rica Welcomes More Tourists in November

Costa Rica saw a notable increase in tourist arrivals last month, providing a boost to an industry that has faced uneven performance throughout the...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica