South America Gains European Holiday Travellers

European holidaymakers are increasingly choosing South America as disrupted routes through the Middle East make some journeys to Asia less convenient, offering airlines and tourism businesses across the continent an unexpected source of demand.

LATAM Airlines reported that its passenger numbers between Europe and South America rose 10% from March to September compared with the same period last year. The airline's chief executive, Roberto Alvo, attributed part of the shift to the war in Iran, which has disrupted connections through Gulf aviation hubs. Separate booking data showed a 6.5% increase in reservations from major European airports to South American destinations, excluding Venezuela, during the first half of 2026.

The change is benefiting a diverse group of destinations. Peru, Chile, Brazil, Argentina and Ecuador have attracted growing interest, while some hotels and lodges report full bookings. Both higher-spending travellers and budget-conscious visitors are participating in the trend, suggesting that the shift extends beyond a narrow luxury market. For travellers accustomed to connecting through Gulf airports, direct transatlantic services offer an alternative route to long-haul holidays.

The opportunity may not prove permanent. Demand could move again if Middle Eastern air networks stabilise, and South American destinations must contend with the cost and availability of flights. LATAM is expanding its fleet with aircraft capable of serving additional routes, potentially improving connections to smaller cities. Tourism operators will be watching whether this disruption-driven increase becomes sustained demand rather than a temporary diversion. Travel operators are watching whether new services can reach less familiar destinations.