Inflation is still not peaking. In the latest report on Consumer Price Indices of the National Administrative Department of Statistics (Dane), it was evidenced that prices rose 13.2%This is leveraged by other items, not necessarily food, such as transportation, which already accumulates inflation of 13.9%. It is worth clarifying that this category weighs 28.3% of the monthly participation.
(Increases in public transport marked inflation in January 2023).
By categories, vehicle acquisition and transport services lead the way in being the ones that have risen the most. The first rose 2.27% only in the month of January and registers an annual increase of 22.1%. In the case of transportation services, these had an increase of 5.72% monthly and 11.25% annually.
However, by subclass, plane tickets and luggage services take the crown with the highest increase, although in January they rose only 0.02%, on an annual basis they already reflect an increase of 37.56%.
According to companies in the sector, this is especially marked by the rise in the price of jet fuel that has ‘doubled’ in just one year.
(Inflation without a ceiling: price rises would continue in the first quarter).
“The financial situation is delicate, mainly because the macroeconomic variables for aviation, throughout 2022 and 2023, have played against it, especially because the price of fuel almost doubled (US$2 in 2021 to US$3.50 in 2022) ”, said in an interview with Portfolio Féliz Antelo, CEO of Viva.
To this, the businessman adds the price of the dollar, and the devaluation of the peso that already reaches 25%.
“In the case of Viva, 75% of what we sell is in Colombian pesos and practically 70% of the costs are in dollars. There is a very complex currency mismatch, with a very large devaluation,” Antelo remarks in the face of the complex financial situation of the company.
Faced with these challenges, some airlines have decided to take a step back and keep their expansion process on hold.
“It is going to be a complex year. All economic analysts agree that it will be difficult. Likewise, growth will be moderate, if not tend to zero. That led us to plan a fairly conservative 2023 operation. However, we remain optimistic about the growth of this industry and the region in the long term”said Santiago Álvarez, executive director of Latam Colombia.
On the consumer side, not only have these challenges affected the price of tickets, as of this year the VAT tax of 19% on air services was reactivated (which worked until 2022 at 5%), which it has touched the pocket of the buyers.
In the case of urban buses, they registered a monthly increase in their prices of 6.61% and an annual increase of 10.47%.this above all due to the increase that is carried out year after year as part of the tariff process.
In the case of inter-municipal services, prices are fluctuating, as of January they showed an increase of 4.20% and an annual increase (compared to the same month of 2021) of 11.52%.
(The products on the market that have risen the most in the last year).
The different drivers and companies have stated that for them, some costs have undoubtedly risen in the final price of their services, not only due to the increase of more than $50 in the price of diesel, but also, because the value of spare parts, Vehicle parts and maintenance have gone up considerably.
In the Dane report, The rise in the prices of parking services stands out, which have risen 5.21% annually, and tolls 4.98%, directly impacting prices.
In addition, according to reports from the Association for the Integral Development of Intermunicipal Land Transport, there are other items that are especially affecting the sector.
On the one hand, the inputs category, representing lubricants and tires and other inputs have risen 20.96%.
(Inflation would not be affecting the consumption of ‘snacks’).
“This item was impacted in its price by the behavior of the Exchange Rate throughout 2022”said Yesid Rodríguez, leader of the transporter union.
On the other hand, fixed costs have risen 19.25%. In this category is the leverage of vehicles, which according to Rodríguez is impacted by the increase in interest rates.
Likewise, ‘parts, pieces and maintenance services, is another rise that transporters have suffered with an annual rise of 11.87%.
“All vehicle maintenance Impact due to the world supply of auto parts and the effect of the exchange rate”points out.
Likewise, the president of the Association points out that the latter has become one of the main challenges of the sector in the country for the maintenance of transport vehicles.
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