Azul’s arrival in Congonhas increases supply and reduces prices – 11/07/2023 – Panel SA

Latam and Gol lead in passenger transport in Congonhas (SP), but Azul almost tripled its presence in the busiest and most profitable airport in the country, forcing ticket prices to fall in the first half of this year.

Azul expanded its operations in Congonhas at the end of March this year, after Anac (National Civil Aviation Agency) increased the company’s slots from 41 to 84 at the end of March.

With this, it was possible to reinforce competition with Gol and Latam on stretches such as the air bridge (Rio-SP) and offer more connections with Belo Horizonte (MG), Recife (PE) and Brasília (DF). Routes to Curitiba (PR) and Porto Alegre (RS) were reopened.

The number of passengers who embarked or disembarked via Azul at the terminal more than doubled, from 85 thousand in February (the month before the start of operations) to 236 thousand in September, according to Anac.

In September, 22% of Azul passengers at the airport traveled via the air shuttle. Next come Brasília (17%) and Confins (16%).

Latam and Gol still lead, handily, in Congonhas, because, as they are older, they have more slots. However, both record lower growth in passengers.

In September, Latam transported 818.3 thousand passengers who had Congonhas as their flight destination or origin – 25% more than in February. In the case of Gol, there were 810.7 thousand (14% more).

Ticket prices

The arrival of Azul has already started to have an effect on consumers, forcing a drop in ticket prices.
From São Paulo to Rio, for example, the average fare fell from R$516.47 to R$448.29 (-13.2%) between the beginning of March and the beginning of August, according to Anac.

The agency does not disclose specific values ​​from airport to airport – only from city to city.
Not only competition, but several other factors, such as fuel prices and demand at the time, influence this definition.

In the same stretch (from São Paulo to Rio) and period, the average ticket fell from R$718.06 to R$494.95 (-31.07%) on Azul; from R$461.43 to R$437.19 (-5.25%) at Gol; and from R$491.57% to R$420.15% (-14.52%) in Latam.

With Diego Felix It is Paulo Ricardo Martins

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