Brazil cuts flights and is the Lantern Latin America

In December, the country will drop by 3% the volume of air passages.
02/11/2015 10h25 - Updated 2/11/2015 10h25
Photo: Yasuyoshi Chiba / AFP / SEE

Brazil is the only country in Latin America that will end 2015 a reduction in the supply of commercial flights. In December, the country will register a fall 3% the volume of air tickets on the market, according to projections of the International Air Transport Association (Behold), who consider domestic and international flights. This is a reaction of the airlines to the worst economic scenario for the sector in the past decade. With the high dollar and the economy in recession, companies operating in the red and investors call into question the financial viability of companies.

Brazil accounts for about a third of the air traffic in Latin America, which will close the year with expansion 5% capacity, according to data of the seven major markets. The greatest growth will be in Mexico (13%), followed by Colombia (12%) and Chile (11%).

In the Brazilian market, the supply of cutting has begun. In September, the volume of offered seats fell 1,74% over the same period 2014, according to the National Civil Aviation Agency (Anac). For a while, the reduction comes from TAM and Gol leaders, while the two smaller companies, Blue and Avianca, only slow down an expansion movement.

We next month 2015 e 2016, the retraction should be even higher. The president of TAM, Claudia stations, He said that by the end of November will be implemented to reduce 10% the domestic network, announced in July. “We will evaluate the next steps as we have more clarity especially on the exchange rate level. We are part of a multinational group (Latam, based in Chile) and we can transfer capacity for stronger markets”, he said.

GOL provides cutting 2% a 4% the ability in the second half of this year. “We live in the worst scenario for the Brazilian aviation history Gol. The only alternative is to reduce manageable supply”, said the president of Gol, Paulo Kakinoff, in an interview earlier this month.

The Blue has enough fleet to expand in 15% its supply of domestic airline tickets in December, but you are flying less and will increase its capacity in just 3,9%, said the president of Blue, Antonoaldo Neves. Already Avianca should expand 15% its offer this year, according to the president of the company, José Efromovich. The reason is that the company continued the its plan to replace its Fokker 100, models with 100 seats, by Airbus 320, with 162 places.


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