Brazilian airlines have suspended more than 2,000 flights scheduled for May amid surging aviation kerosene prices, cutting daily seat supply by about 10,000. The cancellations hit less profitable routes hardest in states such as Amazonas, Pernambuco, Goiás, and Pará. Industry leaders warn of broader adjustments if costs keep rising.
Surging aviation kerosene prices, up 54% in early April with a projected 20% rise in May, are squeezing operators. Data from the Agência Nacional de Aviação Civil shows the cuts amount to a 2.9% reduction in the air network, akin to removing about 12 medium-sized aircraft daily.
Routes between major hubs like São Paulo and Rio de Janeiro remain intact for now, though sector executives anticipate quick changes. This leads to fewer flight options, higher occupancy, and likely ticket price increases.
Fuel accounts for up to 40% of operating costs, worsened by volatile exchange rates and reliance on Petrobras. The Associação Brasileira das Empresas Aéreas described the impacts as “gravíssimos” and is negotiating government aid, including tax cuts and credit lines.
The government eliminated PIS/Cofins on kerosene and allowed installment payments for readjustments, but Petrobras' interest charges above CDI rates disappointed airlines. They seek IR exemptions on aircraft leasing and financial charge reviews.
