Group Ltd. is prepared to wait on plans to go public this year as volatile fuel prices rattle markets, making it difficult for airlines to pursue a US IPO.

The parent of Colombia’s Avianca Holdings SA and Brazil’s Gol Linhas Aereas Inteligentes will wait for better market conditions to go public, given that it doesn’t face immediate financing needs, its Chief Financial Officer Manuel Irarrazaval said in an interview. The company has its IPO documentation ready and has drawn investor interest, he added.

“With the fuel situation as it is today, and without clarity on how long it will last or how it will be resolved, it’s very difficult to do an IPO for an airline, and even more so in Latin America,” Irarrazaval said Monday on the sidelines of the ALTA Airline Leaders Forum in Mexico City.

The US IPO market has fallen short of expectations for the typically busy window starting in September, as higher interest rates and volatility in AI-related stocks kept potential issuers on the sidelines. New listings on US exchanges since the end of August have raised just $2.5 billion, excluding blank-check firms and other financial vehicles, versus $9.8 billion in the corresponding period last year, data compiled by Bloomberg show.

Airlines across the region are grappling with high fuel costs amid conflict in the Middle East and between Russia and Ukraine, even as demand for travel remains resilient. Prior to the tensions, executives had described a possible share offering as a way to pare debt and simplify its structure.

Abra carriers have passed some of those costs on through higher fares without seeing a significant impact on demand, Irarrazaval added. That demand has led the group to continue to expand its regional footprint through Chile’s Sky Airline SA.

Abra, which negotiated for several years to bring Sky into the group, has secured the necessary regulatory approvals and is conducting final checks before closing the transaction. The deal gives Abra a major foothold in Chile and deepens its presence in Peru, while providing room to broaden Sky’s products and tailor its offering to the group’s wider network, Irarrazaval said.

Once integrated, Sky could expand beyond its low-cost roots, following a strategy already underway at other Abra carriers. Gol has added widebody aircraft, long-haul routes and the Insignia business class also offered by Avianca.

Expanding Sky’s offering would also make Abra more attractive to global airline partners, Irarrazaval said. Commercial partners like Air France would be able to connect passengers across the Abra network without being limited to a low-cost product. Sky’s roughly 35 aircraft compare with about 350 planes across Abra.

Abra ultimately wants Avianca, Gol and Sky to operate as parts of an integrated airline network while retaining their individual brands, with passengers able to book and connect across carriers with a consistent product and service, Irarrazaval added.