The Ministry of Ports and Airports (MPor) of Brazil reported that the domestic airfare in the country has decreased for the third consecutive month. In October 2024, the average ticket price was R$ 685.05 (~USD 113.24), representing a drop of 11.8% compared to the same month in 2023. In the first ten months of the year, the indicator recorded a decline of around 5%.
According to MPor, one of the main factors behind this decrease is the reduction in the price of aviation kerosene (QAV), which dropped nearly 25% in October and 11% so far this year compared to 2023.
Silvio Costa Filho, Minister of Ports and Airports, highlighted other aspects that may have influenced this drop: “The Brazilian economy continues to expand, as does the average income of workers, which grew by 3.9% in the third quarter. With greater purchasing power, there is an increase in flight demand, and more Brazilians are traveling within the country. When the economy grows, aviation takes off,” he stated, in remarks reproduced by our partner media in Brazil, AEROIN.
Variations by state and region
Data from the National Civil Aviation Agency (Anac), cited by MPor, shows that airfare prices dropped in 22 Brazilian states and the Federal District, with reductions in all regions of the country. The biggest declines were registered in Roraima (41%), Rondônia (36.6%), and Amazonas (33.6%).
The North region led the reductions, with an average drop of 21.17%, followed by the Central-West (19.30%), Southeast (14.33%), South (4.86%), and Northeast (4.12%).
In the Southeast, October 2024 airfare prices were the lowest compared to the same month last year, with an average fare of R$ 629.01. Rio de Janeiro led the reductions with 17.80%, followed by Minas Gerais (16.90%), São Paulo (12.70%), and Espírito Santo (10.50%).
In the Central-West, Mato Grosso do Sul recorded the lowest fare, with an average of R$ 600.71, equivalent to a 25.50% year-over-year decrease. The Federal District also showed a significant reduction of 22.10%, dropping from R$ 815.16 to R$ 634.81.
In the South, despite the closure of Salgado Filho Airport in Porto Alegre between May and October, Rio Grande do Sul showed the largest drop (11.30%), while in Paraná, the price decreased by 1.70%, and in Santa Catarina, there was a slight increase of 0.40%.
In the Northeast, although the region maintained the highest fare in October, seven of its states recorded drops. Alagoas led with a decrease of 18%, followed by Bahia (4.30%) and Maranhão (8.50%).
Higher supply and affordable fares
Seat availability on domestic flights grew by more than 11% in October, while the occupancy rate reached 84%, the highest level since the start of the historical series. In the same month, almost 67,000 flights were operated, a 3.2% increase from 2023, transporting 8.2 million passengers.
The percentage of tickets sold for less than R$ 500 rose from 37.7% in October 2023 to 45.2% this year. Additionally, tickets under R$ 300 represented more than 20% of the total, compared to 17.4% last year.
Despite this, airlines in Brazil expect the trend to reverse in 2025. During the presentation of the third-quarter 2024 financial results, John Rodgerson, CEO of Azul, was asked by journalists about potential changes in fares, given the current outlook of a high dollar for the upcoming months.
“The industry needs higher fares, that’s how it faces the macroeconomic scenario. And everyone in the industry is struggling with engine and aircraft deliveries,” the executive stated.
Azul reported that the exchange rate of the real against the dollar, which started the year at US$ 1 = R$ 4.85 and is now at R$ 6.05, will have an impact of approximately R$ 1.1 billion on the company’s cash flow, in addition to a cumulative impact (mostly this year, 2024) of around R$ 1.3 billion due to delays in aircraft and component deliveries.
