Many Flights to Venezuela Suspended Due to Currency Issues and Poor Economy

The second Airline is suspending its flights to Venezuela, according to Reuter’s News. The flight suspensions came the day after Germany said it would suspend services to Venezuela. The German company has made it public that Venezuela owes them millions of dollars in ticket revenues.

Venezuela is suffering from a struggling economy, which David Osio explained has resulted in lower oil prices and a shortage of basic goods.

Currency conversion is a another major issue that is playing a role in the flight suspensions. Venezuela’s currency makes it very hard to convert earnings into other currencies.

El Nacional reported that Latam Airlines was suspending operations to Caracas Airport temporarily. There is no specified time frame of when the flights will resume. Sao Paula to Caracas would be affected first; by late July, flights from Caracas from Lima and Santiago would also be affected.

Flight restrictions were tightened two years ago. Consequently, several airlines had to cut down on their operations in the country because they struggled to send back billions of dollars of revenue that was held in the Bolivar currency (the official currency of Venezuela). Some airlines now even require passengers to pay their own fares with dollars.

 

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