Brazil lags behind Colombia and Argentina in the airline sector – 06/04/2023 – Market

The recovery of the air sector in the post-pandemic in Brazil is slower than in countries like Colombia, Mexico and Argentina, show data from IATA (International Air Transport Association).

In February this year, domestic flights in Brazil took 2.4% fewer passengers, compared to February 2019, before the health crisis.

In Colombia, the total number of passengers in February 2023 was 27.8% higher than in the same month of 2019. Mexico, with 20.9% more, and Argentina, with 3.9% more, are also in better situation.

Among the countries in the region with slower recovery, Chile stands out, where the current market is still 11% smaller. In the US, the total number of passengers transported was 1% below that recorded in 2019.

“We see a strong recovery in Latin America in most countries, but we see some negative effect now due to the economic situation,” said Peter Cerdá, IATA vice president for the Americas, during an event in Istanbul.

Cerdá assesses that the strongest recovery in Mexico and Colombia occurred because the two countries withdrew precautionary measures against Covid months earlier than their neighbors.

About Brazil, he pointed out that the country now has more air routes than before the pandemic, with more cities served, despite the number of passengers still being below the previous level.

The vice-president of IATA made several criticisms of governments in the region, for projects to increase consumer rights and create taxes on the airline industry. According to him, in Mexico, taxes represent up to 60% of the ticket price, and in Argentina, taxes can reach 50% of the total.

“The operating environment is very complex. It is a region that has gone through significant political and social changes. Most countries in the region have changed from center-right to center-left governments, which takes you away from the mentality more pro-business towards socially oriented policies. Inflation rose and the dollar became stronger, which weakened local currencies”, evaluates Cerdá.

For him, depending on the economic scenario and the government’s decisions, there may be new unions between companies, such as the one between Avianca and Gol.

Questioned about the Lula government’s project to create a program to lower the price of tickets, Cerdá replied that the best way to reduce prices is to encourage competition.

IATA data show that Brazil has one of the lowest rates of flights per capita on the continent, with 0.45 flights per person per year, which shows that there are many people not served. In Argentina, the fee is 0.6 flights per person per year. In the US, the figure is 2.62 trips per person.

The reporter traveled at the invitation of IATA