Lima Airport Transfer Tax Raises Airline Competition Fears

The implementation of an international transit tax at Lima Airport in Peru has drawn criticism from IATA, who argue it weakens the airport's competitiveness and limits growth. IATA urges the government and airport authorities to collaborate on sustainable alternatives that protect passenger interests, foster aviation development, and enhance Peru's connectivity and competitiveness. They believe the tax hinders the airport's ability to attract connecting flights and ultimately harms the Peruvian economy. Finding a viable solution is crucial for ensuring the long-term success of Lima Airport and the broader aviation industry in Peru.
Lima Airport Transfer Tax Raises Airline Competition Fears

Imagine planning an international trip, only to be hit with unexpected fees during your connection. This scenario has become reality for travelers transiting through Lima's Jorge Chávez International Airport, where a new policy has drawn sharp criticism from global aviation authorities.

The Controversial Transit Fee

On December 7, 2025, Peru's Ministry of Transport and Communications (MTC) and Lima Airport Partners (LAP) failed to reach consensus on the International Transit Passenger Airport Usage Fee (TUUA), allowing the $11.86 per-segment charge to take effect. The International Air Transport Association (IATA) has strongly opposed the measure, warning it could significantly erode Lima's position as a regional aviation hub.

IATA projects the fee will limit annual international passenger growth at Jorge Chávez Airport to just 3%, compared to an anticipated 9% without the charge. "This decision fails to consider passenger interests or Peru's broader economic development," said Peter Cerdá, IATA's Vice President for the Americas.

Regional Competition Heats Up

The policy places Lima at a disadvantage against rival hubs like Bogotá, Panama City, Santiago, and Mexico City—none of which impose similar transit fees. These airports have leveraged their geographic advantages and competitive pricing to strengthen their positions as regional transit centers.

Jorge Chávez Airport, Peru's primary international gateway operated by Germany's Fraport through its LAP subsidiary, has undergone significant expansion in recent years. The TUUA fee is intended to help cover operational costs and fund future development, but critics argue it may achieve the opposite effect.

Broader Implications

The transit fee's ripple effects could extend beyond airport operations:

For travelers: The additional cost may deter price-sensitive passengers from choosing Lima as their connection point, potentially redirecting traffic to competitor hubs.

For the airport: Reduced passenger volumes could diminish Lima's hub status and discourage airlines from maintaining or expanding service.

For Peru's economy: Weakened air connectivity may impact tourism and trade, sectors that rely heavily on efficient international access.

Searching for Solutions

Peru's president has intervened to encourage compromise, with IATA submitting alternative proposals to balance airport sustainability with passenger affordability. Potential solutions include operational efficiency improvements, diversified revenue streams, and targeted government support.

As discussions continue, the aviation industry watches closely to see whether Peru can maintain its competitive edge in an increasingly crowded Latin American aviation market.