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

Costa Rica Pressed to Improve Conditions for Indigenous Coffee Workers

More than 500 people and organizations, among them three former presidents of Costa Rica and Panama, have signed a public statement demanding that the...

Pura Vida and Property: How Costa Rica’s Traditional Way of Selling Homes Is Entering the Digital Age

When people think about buying or selling property in Costa Rica today, they often picture property portals, real estate agents, Realtors and international buyers...

U.S. Citizen Found Dead in Guanacaste as OIJ Investigates

The Judicial Investigation Agency is treating the death of a 75-year-old U.S. citizen found in Cabo Velas, Santa Cruz, as an apparent homicide possibly linked to a robbery at the property.

Costa Rica Ferry to Nicoya Peninsula Loses Two Daily Sailings

If you cross between Puntarenas and the southern Nicoya Peninsula in the next few weeks, expect fewer sailings, fuller boats and longer waits at...

Costa Rica Makes Forbes 2026 List of Best Places to Retire

Costa Rica has again been named one of the world's best places for Americans to retire, appearing in the 2026 edition of the Forbes...

Where Fixed Internet Still Does Not Reach in Costa Rica

Nearly three in ten Costa Rican households have no fixed internet, and the gap sits in the rural and coastal areas that show up most often on relocation shortlists.

Costa Rica Under Yellow Alert as Saturated Ground Raises Flood Risk

If you are driving to Limón, Turrialba or the southern Pacific today, expect delays and check the road before you leave. A yellow alert...

Heavy Rain and Strong Winds Threaten Costa Rica’s Romería Weekend

If you are walking to Cartago this weekend, plan on getting soaked at some point. Plan also for wind strong enough to bring a...

Renting Versus Buying in Costa Rica and How to Decide

One longtime foreign resident of Costa Rica could buy a house or a condominium outright tomorrow. He has the cash, he has been here...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel