Brazil’s airline sector is currently enmeshed in a complex and growing web of legal challenges, facing an unprecedented wave of litigation.
Passengers frequently complain about delays, cancellations, crowded flights, and refunds, positioning Brazil as a global leader in airline lawsuits.
However, airlines claim these lawsuits inflate their costs, increase ticket prices, and stifle competition by deterring new entrants.
The International Air Transport Association (IATA) reports that lawsuits cost Brazilian airlines over R$1 billion ($250 million) annually.
Each ticket carries an extra R$10 to R$12 to cover these legal fees, according to Dany Oliveira, IATA’s Brazil director.
He says this burden impacts all 100 million passengers flying in the country each year.
Latam Airlines, which handles nearly half of its operations in Brazil, revealed that 98% of its customer lawsuits originate in Brazil.
Despite earning recognition as the world’s second most punctual airline, Latam noted a 33% surge in lawsuits from 2022 to 2023.
The company expects legal expenses to exceed R$350 million in 2024, a significant jump.
This high litigation rate affects established airlines like Gol.
They filed for bankruptcy protection in the U.S. after slashing their seat capacity by nearly 50% in Rondônia due to the cost of lawsuits.
Brazil Faces Surge in Passenger Lawsuits Against Airlines
Aviation law expert Ricardo Bernardi explains that Brazilian courts often presume emotional distress in cases of flight delays or cancellations.
Jurema Monteiro, head of the Brazilian Airlines Association (Abear), attributes much of the litigation to regulatory ambiguity.
She and Oliveira believe “predatory” websites prey on passengers to file unnecessary lawsuits.
However, numerous Brazilians we encounter share a common perspective: like various aspects in Brazil, airlines are excessively priced.
They offer poor service, often prioritizing deceiving customers. Additionally, banks exemplify this “squeeze the lemon” approach with their exorbitant interest rates.
Meanwhile, Luciano Barreto, CEO of AirHelp, says airlines complicate negotiations, pushing passengers toward litigation.
Abear and the government launched a mediation platform, reducing complaints by 30% and boosting resolution rates by 10%.
Despite progress, Brazil’s legal landscape remains complex, keeping it the world’s most lawsuit-prone aviation market.