RIO DE JANEIRO, June 7 (Reuters) – LATAM Airlines Chief Executive ‌Roberto Alvo said the ‌airline industry may need to cut ​capacity further if elevated fuel prices persist into 2027, warning that carriers with weaker balance ‌sheets and ⁠greater exposure to price-sensitive traffic will face mounting ⁠pressure.

“If this extends for longer, I think that the ​industry will have ​to ​adjust capacity further,” ‌Alvo told Reuters in an interview on the sidelines of the International Air Transport Association’s annual meeting in Rio de ‌Janeiro.

He said airline ​funding costs were ​already rising ​and aircraft and ‌engine supply-chain problems were ​likely to ​persist for two or three years.

(Reporting by Rajesh Kumar ​Singh ‌and Gabriel Araujo in in ​Rio de Janeiro, editing ​by Manuela Andreoni)