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

Hostage Crisis Unfolds in Guatemala Prisons After Gang Leader Transfers

Gang members sparked riots in multiple prisons across Guatemala on Saturday, taking more than 40 guards and staff as hostages. The unrest stems from...

Australian Open 2026 Opens With Star Power, Heat & Drama

The Australian Open is barely underway and already the storylines are piling up: top seeds pushed early, brutal heat testing bodies and patience, and...

China and U.S. Trade Barbs Over Influence in Costa Rica

The Embassy of the People's Republic of China in Costa Rica reacted strongly to statements made by the new U.S. ambassador to the country,...

Costa Rica Firefighters Battle Surge in Wildfires Amid Dry Winds

Firefighters across Costa Rica report a sharp rise in wildfire incidents this year, with dry weather and strong winds fueling larger blazes. In the...

Costa Rica’s Tourism Is Losing Ground to Mexico, Guatemala and Others

The National Chamber of Tourism (CANATUR) warned that Costa Rica's tourism ended 2025 with a modest 1% increase in international arrivals, a figure that...

Roger Federer Praises Carlos Alcaraz and Jannik Sinner’s Epic Tennis Rivalry

Roger Federer, the Swiss maestro who redefined tennis with his grace and precision, returned to Melbourne Park on Thursday with high praise for the...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica