The aviation sector in Latin America is soaring. Over the past 15 years, passenger traffic has grown at an impressive 5 percent annually - a pace unmatched in other emerging markets. With passenger demand surging beyond expectations, regional infrastructure has been pushed to its limits, intensified further by the post-pandemic rebound and few airports capture this dilemma better than El Dorado International in Bogotá.

A senior executive at a global consultancy highlighted, “Colombia shows how success can quickly turn into urgency. Surpassing 45 million passengers in 2024 confirms Bogotá’s role as the region’s leading air hub and proves that post-pandemic demand has far exceeded all projections.” This surge is no accident. According to the executive, it reflects “the strong recovery of the domestic market, the consolidation of El Dorado as a key regional and international connection point and the aggressive capacity expansion by airlines such as Avianca and LATAM.” Cargo has played an equally important role with “more than 800,000 tonnes of freight moved, it underscores Colombia’s position as a high-value logistics hub, particularly for e-commerce,” noted our source. 

Yet this very success has begun to strain the system. The rapid growth of traffic is putting intense pressure on El Dorado’s infrastructure, even as expansion plans move forward under a Public-Private-Partnership (“PPP”). To keep pace, “The ‘El Dorado Max’ project (“EDmax”) is the only viable solution to prevent congestion from stalling economic momentum,” commented the consultancy executive. The USD 2.3 billion initiative will be tendered in 2026 and is expected to begin construction by 2028. Its ambitious scope is “to expand capacity to a target of 60 - 73 million passengers, increase contact stands, terminals and strengthen cargo infrastructure and road access.” The executive noted that the works “will extend into the mid-2030s.”  

“The ‘El Dorado Max’ project (“EDmax”) is the only viable solution to prevent congestion from stalling economic momentum.”

Senior executive at an international consultancy firm

For investors, the challenges extend beyond technical issues to include systemic and governance-related risks. The most pressing of these are political, heightened by the current context under President Gustavo Petro’s administration. As one industry source noted, “Investors should account for this uncertainty by building political risk into their models - typically through a higher cost of capital - while also working to mitigate it via early public-private dialogue and support from multilateral institutions.” On the regulatory front, adjustments by Colombia's National Infrastructure (Agency Agencia Nacional de Infraestructura, “ANI”) and Aerocivil bring both technical and financial hurdles. As a senior industry expert explained, “ANI’s strict CAPEX [capital expenditure] discipline - with a 20 percent cap on design additions - raises execution risk if initial plans prove inadequate.” The expert continued, “Similarly, reliance on annual tariff resolutions, such as Resolution 77 of 2025, reduces long-term cash flow predictability.” 

“Investors should account for this uncertainty by building political risk into their models... while also working to mitigate it via early public-private dialogue and support from multilateral institutions.”

Senior executive at an international consultancy firm

Environmental and social considerations are also decisive. Securing the Environmental Licence (“ANLA”) is expected to be complex and time-consuming, with potential to delay pre-construction beyond 2027. Heightened public scrutiny and community involvement will require the consortium to meet rigorous ESG standards, a prerequisite not only for local acceptance but also for attracting multilateral financing. Taken together, these pressures highlight a broader reality for investors. As one expert summarised, “Investment in projects like El Dorado faces a dual imperative. Commercial viability and flexibility of a PPP now depend not only on the strength of the contract itself, but also on the investor’s ability to navigate a regulatory environment that, while not fundamentally changed in law, has become significantly more active and demanding.” 

If Colombia illustrates the risks of infrastructure falling behind demand, Chile shows the value of long-term planning. Santiago International Airport already serves as the country’s primary gateway, with forecasts of traffic tripling by 2025 and a USD 4 billion expansion to boost capacity to 84 million passengers. This plan goes beyond terminals and includes a new cargo area, improved road access and a light rail system linking terminals. The basic design phase is under tender, with major works expected after 2030. This long horizon reflects Chile’s disciplined approach to infrastructure planning, one that requires alignment with its Ministry of Public Works. “It is more likely that the next concession will be awarded to international firms rather than local ones, due to the financial and operational capacity required,” remarked a consulting construction executive. 

While Colombia struggles with the strain of playing catch-up, Chile stands out for its forward-looking approach. For industry leaders and investors alike, the region offers extraordinary opportunities, but only those who commit early, structure robust partnerships and navigate the political and regulatory terrain with foresight will capture lasting value at a cruising altitude.