Airlines in Chile Mapped Whitespaces Report¶

Potential Whitespaces¶

The Chilean airline industry presents several opportunities for innovation and market development. This report details potential whitespaces, including the market signals that identify them and their estimated addressable markets.

1. Reliability-Focused LCC/ULCC Niche ("Low Cost, High Trust")¶

Market Signals Identified:
- High passenger frustration due to chronic flight cancellations and delays from aircraft/crew shortages (Forbes Chile, 2025; Aviationline, 2024).
- Passengers incurring extra costs (accommodation, missed connections) and losing valuable time (Current Pains Analysis).
- Shift in passenger priorities, with reliability and punctuality becoming primary decision drivers over price for certain segments (Current Pains Analysis).
- Public acknowledgment by JetSMART of high complaint ratios and commitment to reduction, indicating widespread dissatisfaction (AméricaEconomía, 2024; Current Pains Analysis).
- Growing demand for operational reliability even at low price points (Consumption Trends Analysis).
- Current LCCs/ULCCs (SKY, JetSMART) focus mainly on base fare price, not operational reliability as a core differentiator (Value Chain Analysis).
- Persistent asset and personnel shortages impacting all airlines, making consistent reliability a valuable differentiator (Ongoing Changes Signals; Forbes Chile, 2025).
- Airline investments in technology (e.g., SKY with AI, JetSMART with VIPER) could be leveraged for better reliability (Ongoing Changes Signals; Inspiring Startups Analysis).
Potential Addressable Market:
- Formula: (Total Domestic Passengers) * (LCC/ULCC Domestic Market Share) * (Percentage of Reliability-Sensitive Segment) * (Average Potential Premium per Passenger Trip)
- Calculation:
  - Lower Bound: 16,400,000 passengers * 0.376 market share * 0.10 segment * 5 USD premium = 3,086,400 USD
  - Upper Bound: 16,400,000 passengers * 0.376 market share * 0.30 segment * 15 USD premium = 27,687,600 USD
- Range: USD 3.1 million - 27.7 million per year.
- Table: | Variable | Value | Source/Rationale | | :------------------------------------- | :-------------------- | :-------------------------------------------------------------------------------------------------------------------------------------------- | | Total Domestic Passengers (2024) | 16.4 million | Junta de Aeronáutica Civil (JAC) | | LCC/ULCC Domestic Market Share (Mar 2025) | 37.6% | Value Chain Analysis (SKY 25.8% + JetSMART 11.8%) | | Reliability-Sensitive Segment | 10% - 30% | Estimate based on strong passenger pain signals [Current Pains Analysis] and reliability as a key decision driver [Consumption Trends Analysis] | | Average Potential Premium per Trip | USD 5 - 15 | Estimated premium for perceived/guaranteed better punctuality or service recovery. | | Potential Addressable Market | USD 3.1M - 27.7M | Calculated |

2. Sustainable Aviation Solutions & Eco-Tourism Niche¶

Market Signals Identified:
- Growing environmental consciousness among travelers, especially younger demographics and European tourists (Consumption Trends Analysis).
- Willingness among some segments to pay a premium for sustainable travel options (Current and Future Opportunities Analysis).
- Positive reception to brands demonstrating genuine commitment to sustainability (e.g., LATAM/NotCo partnership) (Inspiring Startups Analysis; Forbes Chile, 2024).
- Airlines investing in more fuel-efficient aircraft (e.g., SKY's A321XLR) (Value Chain Analysis).
- Active exploration of Sustainable Aviation Fuels (SAF), supported by Chile's SAF Roadmap and initiatives like Copec's investment in INERATEC (Ongoing Changes Signals; Emerging Technologies Analysis).
- Carbon offset programs offered but not yet mainstream or widely trusted.
- Partnerships with eco-conscious brands for onboard products (Inspiring Startups Analysis; Forbes Chile, 2024).
Potential Addressable Market:
- Formula: (Total Passengers - Domestic + International) * (Estimated Percentage of Eco-Conscious Segment) * (Average Potential Premium per Passenger Trip)
- Calculation:
  - Lower Bound: 28,200,000 passengers * 0.05 segment * 3 USD premium = 4,230,000 USD
  - Upper Bound: 28,200,000 passengers * 0.15 segment * 10 USD premium = 42,300,000 USD
- Range: USD 4.2 million - 42.3 million per year.
- Table: | Variable | Value | Source/Rationale | | :------------------------------------- | :-------------------- | :-------------------------------------------------------------------------------------------------------------------------------------------------- | | Total Passengers (Dom+Intl, 2024) | 28.2 million | MTT/JAC (16.4M Domestic + 11.8M International) | | Eco-Conscious Segment | 5% - 15% | Estimate based on growing environmental awareness [Consumption Trends Analysis] and willingness to pay for sustainability [Current and Future Opps.] | | Average Potential Premium per Trip | USD 3 - 10 | Estimated premium for carbon offsets or SAF contribution. | | Potential Addressable Market | USD 4.2M - 42.3M | Calculated |

3. Integrated "Peace of Mind" Travel Packages¶

Market Signals Identified:
- High passenger anxiety regarding travel disruptions and associated costs (Current Pains Analysis).
- Frustration with complex ancillary costs and feeling "nickeled and dimed" (Current Pains Analysis).
- Desire for simplified, predictable purchasing and clear policies, especially for luggage and seats (Current Pains Analysis).
- Difficulties in obtaining timely re-accommodation or compensation during disruptions (Current Pains Analysis).
- Current ancillary offerings are often fragmented and complex (Current Pains Analysis).
- Existing travel insurance add-ons, but proactive, integrated disruption assistance is rare.
- Availability of technology (AI, automation) for seamless bundling and proactive customer service (Current and Future Opportunities Analysis).
- Opportunity to simplify the LCC/ULCC ancillary purchase flow.
Potential Addressable Market:
- Formula: (Total Passengers - Domestic + International) * (Estimated Percentage of Convenience/Risk-Averse Segment) * (Average Revenue per Integrated Package)
- Calculation:
  - Lower Bound: 28,200,000 passengers * 0.15 segment * 30 USD package revenue = 126,900,000 USD
  - Upper Bound: 28,200,000 passengers * 0.40 segment * 70 USD package revenue = 789,600,000 USD
- Range: USD 126.9 million - 789.6 million per year.
- Table: | Variable | Value | Source/Rationale | | :------------------------------------- | :--------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Total Passengers (Dom+Intl, 2024) | 28.2 million | MTT/JAC | | Convenience/Risk-Averse Segment | 15% - 40% | Estimate based on high volume of complaints about disruptions and complex fees [Current Pains Analysis], indicating desire for smoother, predictable experiences. | | Average Revenue per Integrated Package | USD 30 - 70 | Estimated price for a bundle of ancillaries plus premium for integrated service and peace of mind, leveraging existing ancillary revenue strength [Consumption Trends Analysis]. | | Potential Addressable Market | USD 126.9M - 789.6M| Calculated |

4. Hyper-Connected Regional Mobility Services¶

Market Signals Identified:
- Chile's elongated geography creates connectivity challenges for remote regions (Value Chain Analysis - Aerovías DAP profile).
- Potential for growth in domestic tourism and business travel to underserved areas with improved accessibility (Current and Future Opportunities Analysis).
- Passenger tolerance for one-stop connections if the overall journey is convenient and well-priced (Consumption Trends Analysis).
- Existence of smaller regional operators (e.g., Aerovías DAP) with limited networks (Value Chain Analysis).
- Major carriers focus primarily on trunk routes.
- Planned government investments in regional airport infrastructure (Ongoing Changes Signals).
- Opportunity for interline agreements or partnerships to feed traffic to regional networks.
Potential Addressable Market (Passenger Revenue Potential):
- Formula: (Number of Underserved Regional Routes) * (Estimated Avg Annual Passenger Volume per Route) * (Estimated Avg Revenue per Passenger Trip)
- Calculation:
  - Lower Bound: 5 routes * 10,000 passengers/route * 40 USD revenue/passenger = 2,000,000 USD
  - Upper Bound: 15 routes * 50,000 passengers/route * 100 USD revenue/passenger = 75,000,000 USD
- Range: USD 2.0 million - 75.0 million per year (total passenger revenue potential on these routes).
- Table: | Variable | Value | Source/Rationale | | :---------------------------------------- | :-------------------- | :---------------------------------------------------------------------------------------------------------------------------------------------- | | Number of Underserved Regional Routes | 5 - 15 | Estimate based on Chile's geography and existence of niche regional operators [Value Chain Analysis], potential beyond main trunk network. | | Estimated Avg Annual Passengers per Route | 10,000 - 50,000 | Estimated sustainable traffic per route, assuming stimulated demand from improved service. | | Estimated Avg Revenue per Passenger Trip | USD 40 - 100 | Estimated average revenue (fare + ancillaries) on regional routes, considering smaller aircraft economics and local market dynamics. | | Potential Addressable Market | USD 2.0M - 75.0M | Calculated (Represents total potential passenger revenue on these routes) |

5. Premium Cargo Logistics for Specialized Chilean Exports¶

Market Signals Identified:
- Strong Chilean export sectors for high-value, perishable goods like salmon, fruits, and pharmaceuticals (Value Chain Analysis; Current Pains Analysis - B2B Cargo).
- Cargo clients require guaranteed capacity and reliability, as disruptions jeopardize supply chains (Current Pains Analysis - B2B Cargo).
- Resilient B2B air-cargo demand, even amidst passenger market fluctuations (Consumption Trends Analysis).
- Existing cargo operations by major carriers like LATAM (Value Chain Analysis).
- Ongoing investment in temperature-controlled warehouses and fast-track customs (Consumption Trends Analysis).
- Opportunity for specialized, high-reliability services with strong SLAs.
- Aircraft scarcity impacting belly-hold cargo capacity.
Potential Addressable Market:
- Formula: (Total Air Cargo Export Volume - kg) * (Estimated Percentage of High-Value, Specialized Cargo) * (Estimated Percentage of High-Value Cargo Opting for Premium Service) * (Average Potential Premium per kg)
- Calculation:
  - Lower Bound: 480,000,000 kg * 0.40 segment * 0.10 opting for premium * 0.5 USD premium/kg = 9,600,000 USD
  - Upper Bound: 480,000,000 kg * 0.60 segment * 0.30 opting for premium * 2.0 USD premium/kg = 172,800,000 USD
- Range: USD 9.6 million - 172.8 million per year.
- Table: | Variable | Value | Source/Rationale | | :----------------------------------------------------- | :--------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Total Air Cargo Export Volume (2023 proxy) | 480,000,000 kg | Total air cargo (import/export) as proxy for market scale. | | Percentage of High-Value, Specialized Cargo | 40% - 60% | Estimate based on key Chilean air exports (salmon, fruit, pharma) requiring special handling. | | Percentage of High-Value Cargo Opting for Premium | 10% - 30% | Estimate of segment willing to pay for enhanced reliability and specialized handling for critical shipments [Current Pains Analysis - B2B Cargo]. | | Average Potential Premium per kg | USD 0.5 - 2.0 | Estimated premium per kg over standard rates for reliability, speed, and specialized handling. | | Potential Addressable Market | USD 9.6M - 172.8M | Calculated |

6. AI-Powered Personalized Ancillary Marketplaces¶

Market Signals Identified:
- Passenger expectation for personalized offers, common in other digital interactions (Current and Future Opportunities Analysis).
- Fatigue from generic, one-size-fits-all ancillary upselling.
- Implicit desire for relevant offers that add genuine value to the journey.
- Ancillary purchases are integral to LCC/ULCC travel, showing willingness to customize (Consumption Trends Analysis).
- Airlines heavily rely on ancillary revenues (Value Chain Analysis; Consumption Trends Analysis).
- Current ancillary sales often use static lists or basic rule-based recommendations.
- Rapid advancements in AI/ML enable sophisticated personalization and dynamic pricing (Current and Future Opportunities Analysis; Ongoing Changes Signals).
- Airlines possess vast passenger data for personalization.
Potential Addressable Market (Incremental Revenue):
- Formula: (Total Passengers - Domestic + International) * (Estimated Average Ancillary Revenue per Passenger) * (Estimated Percentage Increase in Average Ancillary Revenue)
- Calculation:
  - Lower Bound: 28,200,000 passengers * 20 USD avg. ancillary revenue * 0.15 increase = 84,600,000 USD
  - Upper Bound: 28,200,000 passengers * 50 USD avg. ancillary revenue * 0.40 increase = 564,000,000 USD
- Range: USD 84.6 million - 564.0 million per year (potential incremental revenue).
- Table: | Variable | Value | Source/Rationale | | :----------------------------------------------------- | :--------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Total Passengers (Dom+Intl, 2024) | 28.2 million | MTT/JAC | | Estimated Avg Ancillary Revenue per Passenger | USD 20 - 50 | Blended average across carriers, acknowledging LCCs' high reliance on ancillaries [Consumption Trends Analysis] and global reports. | | Estimated % Increase in Avg Ancillary Revenue with AI | 15% - 40% | Estimated uplift from AI-powered personalization increasing conversion and value. LATAM's app showed 121% ancillary sales jump in a specific context. | | Potential Addressable Market (Incremental Revenue) | USD 84.6M - 564.0M | Calculated (Represents potential incremental revenue from enhanced ancillary sales) |

References¶

¿Hay escasez de aviones y personal especializado en la industria? Aerolíneas en Latinoamérica recurren al Wet Lease para cubrir demanda - Forbes Chile. (2025, January 29). https://www.forbes.cl/negocios/2025/01/29/hay-escasez-de-aviones-y-personal-especializado-en-la-industria-aerolineas-en-latinoamerica-recurren-al-wet-lease-para-cubrir-demanda
Cuatro aerolíneas internacionales dejan o reducen vuelos a Chile: sorpresa y preocupación de funcionarios - Aviacionline. (2024, April 15). https://aviacionline.com/2024/04/cuatro-aerolineas-internacionales-dejan-o-reducen-vuelos-a-chile-sorpresa-y-preocupacion-de-funcionarios/
JETSMART TUVO VARIACIÓN EN PAXS TRANSPORTADOS - T News. (2025, January 6). https://tnews.com.pe/jetsmart-tuvo-variacion-en-paxs-transportados/
JetSMART confirma procesos para reducir alta cantidad de reclamos de pasajeros. AméricaEconomía. (2024, April 16). https://www.americaeconomia.com/negocios-e-industrias/jetsmart-confirma-procesos-para-reducir-alta-cantidad-de-reclamos-de-pasajeros
Alianza entre Latam y NotCo: vuelos nacionales de la aerolínea ofrecerán productos de la startup chilena - Forbes Chile. (2024, April 9). https://www.forbes.cl/negocios/2024/04/09/alianza-entre-latam-y-notco-vuelos-nacionales-de-la-aerolinea-ofreceran-productos-de-la-startup-chilena
LATAM Streamlines Flight Booking, Increases Ancillary Revenue With New App - APEX. (2020, September 29). https://apex.aero/articles/latam-ancillary-revenue-app-booking/
Aerosan prepara exportaciones de fruta con un aumento de 30% en su capacidad logística. (2024, July 19). https://www.lachicadelcable.cl/aerosan-prepara-exportaciones-de-fruta-con-un-aumento-de-30-en-su-capacidad-logistica/
Recuperación y competitividad: el nuevo escenario del transporte aéreo de carga - AAACI. (2025, March 31). https://www.aaaci.org.ar/contenido/263/recuperacion-y-competitividad-el-nuevo-escenario-del-transporte-aereo-de-carga
La carga aérea se prepara para un 2024 positivo - Alog Chile. (2024, January 9). https://www.alog.cl/noticias/la-carga-aerea-se-prepara-para-un-2024-positivo/
2022 CarTrawler Yearbook of Ancillary Revenue - IdeaWorksCompany. (2022, September 27). https://ideaworkscompany.com/wp-content/uploads/2022/09/2022-CarTrawler-Yearbook-of-Ancillary-Revenue.pdf
2024 CarTrawler Yearbook of Ancillary Revenue © IdeaWorksCompany.com LLC Page 1. (2024, September 24). https://ideaworkscompany.com/wp-content/uploads/2024/09/2024-CarTrawler-Yearbook.pdf
Driving growth with airline ancillaries - Mastercard Data & Services. (2024, June 10). https://www.mastercard.com/news/perspectives/2024/driving-growth-airline-ancillaries/
THE VALUE OF AIR TRANSPORT TO CHILE - IATA. https://www.iata.org/en/iata-repository/publications/economic-reports/chile-a-t-value-chain-report/
Transporte aéreo alcanzó récord histórico con más de 28,2 millones de pasajeros en 2024. (2025, January 20). https://www.mtt.gob.cl/detalles-noticia/transporte-aereo-alcanzo-record-historico-con-mas-de-28,2-millones-de-pasajeros-en-2024
Chile termina 2024 con récord de pasajeros transportados por vía aérea. (2025, January 22). https://enlared.net/2025/01/22/chile-termina-2024-con-record-de-pasajeros-transportados-por-via-aerea/ (Note: Other insights are drawn from the provided knowledge blocks: "Value Chain Report on the Airlines Industry in Chile," "Airlines in Chile Current and Future Opportunities Analysis," "Airlines in Chile Ongoing Changes Signals Analysis," "Airlines in Chile Current Pains Analysis," "Airlines in Chile Consumption Trends Analysis," "Startup chilena VIPER aterriza en la industria aérea con su sistema de gestión. (2025, April 28)," and "Copec invierte en startup para potenciar combustibles sostenibles. (2024, January 26).")