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We will analyze the growing Brazil air market, which by transported passengers is the largest commercial air market in Latin America and continues to grow.
One more time, thanks to the valuable statistical data and studies carried out by Routesonline, we will analyze the interesting and growing air market of the great power Brazil, which prepares to receive the arrival of new domestic airlines after the approval of the change in foreign shareholding in their companies, that now, unrestricted opens doors to unprecedented growth.
Brazil
After the announcement generated by the Senate that foreign airlines may have a majority shareholding to operate domestic airlines in Brazil, the gates of heaven opened and the first comers arrived. Where he Globalia Group was the first to request and also receive permission to start the legal process for the creation of its airline that could be an independent sister subsidiary of Air Europa in the country of Rio de Janeiro, But this is not all, others 3 unidentified groups have started the process and will be revealed in due course, according to Brazilian authorities.
Within this context, the domestic market in Brazil has recovered in recent years despite the slow economic recovery and the country's profitability problems with some of its airlines. ANAC data shows that it grew 3.3 percent in 2018, with airlines 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. Airlines also carried 24,1 million domestic passengers during the first three months of 2019, an increase of 4,4 percent compared to the same period of the previous year.
capacity grew by 3,4 percent in 2018 a 119,6 million scheduled departure seats, the first time that the number of domestic 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 are dominated by three airlines, GOL Linhas Aereas, LATAM Airlines Group and Blue Airlines, that jointly control more than 90 percent of the market.
Based on data from OAG Schedules Analyzer (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 the year, OAG data shows that GOL increased domestic capacity by 3,3 percent and Azul's capacity increased by 12,7 percent compared to the first half of 2018. of the big three, LATAM was the only one that contracted, reducing by 1,4 percent.
Nevertheless, the top three airlines are forecast to grow during the second half of 2019 as they seek to fill a void left by Avianca Brasil, that has even led these and other smaller airlines to be able to occupy the slots that have become available in the main airports in Brazil.
GOL appears ready to increase its domestic capacity by a 12 percent, compared to the second half of 2018, while Azul will increase the number of seats on offer by 23.1 percent. LATAM's growth will be approximately 3.8 percent.
Brazil's domestic market, Despite its great growth, it also has important challenges, where infrastructure will be the main brake on development. huge airport, but with growth limitations and thousands of daily flights like Congonhas, Guarulhos or Santos Dumont, they will be able to stop the current high blue numbers and also, will hinder the development of new domestic airlines, which must seek alternative markets within Brazil to start and consolidate their brand in such a demanding commercial airline market, where demand surplus, but no space.
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