Brazil: the largest commercial air market in Latin America

Brazil

We will analyze the growing market toékingdom of Brazil, which by passengers transported is the largest airline marketás big from Latinoamérich and still growing.

Once más, thanks to valuable statistical dataístics and studies carried out by Routesonline, We will analyze the interesting and growing marketéprisoner of the great power Brazil, which prepares to receive the arrival of new aerolíneas doméstatic after approvalón of the change in participationón foreign shareholding in their companies, that now, Sin Restricción opens the doors to unprecedented growth.

Brazil

After the announcement generated by the Senate that the aerolíforeign lines mayán have greateríto shareholding to operate aerolíneas domésticas in Brazil, the gates of heaven opened and the first comers arrived. Where he Globalia Group was the first to request and alsoén receive permission to begin the legal process for the creationón of your aerosolíI think I caníto be an independent sister subsidiary of Air Europa In the país carioca, But this is not all, others 3 groups toún unidentified people have started the process and will beán revealed at the time accordingúBrazilian authorities indicatedñas.

Within this context, The domestic market in Brazil has recovered in the úlast toñDespite the slow recoveryón económica and the problems of profitability of the countryís with some of their aerosolídenies. ANAC data shows that it grewó 3.3 percent in 2018, with aerosolílines that transport 93.6 million passengers. This was higher than 90.6 million in 2017.

Now, with the imminent definitive closure of Avianca Brasil, new opportunities open up for current operators, as for the new. The aerosolsínot too oldéthey transported 24,1 million domestic passengers during the first three months of 2019, an increase of 4,4 percent comparedón with the same personíI smell the añprevious one.

The capacity grewó a 3,4 percent in 2018 a 119,6 million scheduled departure seats, the first time the núnumber of national seats has increased since 2012. The figures of OAG show that the market contracted a 1,8 percent in 2013; 0.7 percent in 2014; 0.5 percent in 2015; 11.2 percent in 2016 and 0.3 percent in 2017.

Domestic flights in Brazil areán dominated by three airídenies, GOL Linhas Aereas, LATAM Airlines Group and Blue Airlines, that they jointly controlás of the 90 percent of the market.

Sayún OAG Schedules Analyzer data (with zipper 17 June 2019), GOAL represents the 34.3 percent of all seats on sale, LATAM the 30.4 percent and Azul Airlines the 26.8 percent.

During the first half of theñO, OAG data shows that GOL increasedó sun capacityéstatic in a 3,3 percent and Azul's capacity increasedó in a 12,7 percent comparedón with the first half of 2018. of the big three, LATAM was the úonly one that contracted, reducing by 1,4 percent.

Nevertheless, the three major airlines are forecast toíyou want to growán during the second half of 2019 as they seek to fill a voidíor left by Avianca Brazil, that has even led to these and other más smallñas aerolíto be able to occupy the slots that have become available at the main airports in Brazil.

GOL seems ready to increase its sun capacityéstatic in a 12 percent, in comparisonón with the second half of 2018, while blue increaseá the number of seats on offer in a 23.1 percent. The growth of LATAM will beá about 3.8 percent.

The sun marketéstic from Brazil, Despite its great growth, it also hasén with important challengesíos, where the infrastructure will beá the main brake on development. huge airport, but with growth limitations and thousands of daily flights like Congonhas, Guarulhos or Santos Dumont, couldán stop the highs núcurrent blue groupers and alsoén, hinderá the development of new aerosolíneas doméstatic, which dutyán look for alternative markets within Brazil to start and consolidate its brand in such a demanding airline market, where demand surplus, but no space.

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