Influenced by Pandemic, Airfare Prices Drop 34 Percent in Brazil During Q2

RIO DE JANEIRO, BRAZIL – The price of flight tickets in Q2 dropped 34.3 percent compared to the same period last year, according to data from the National Civil Aviation Agency (ANAC).

From April to June, the average flight price sold in Brazil was R$294.92 (US$59), compared to R$448.65 recorded the year before.

The period was marked by stricter restrictive measures to contain the spread of the novel coronavirus in the country. According to ANAC, this was the greatest price reduction recorded in Q2 in 11 years.

This was the second consecutive quarter with a drop in the average price of domestic flights in Brazil. From January to March, the average flight price stood at R$353.12, a reduction of 14.9 percent over the same period in 2019, when the average fare was R$414.71.

From April to June this year, some 12.6 percent of tickets were sold with fares below R$100 and 56.9 percent below R$300. Tickets over R$1,500 represented 0.9 percent of the total.

Among the main companies in the sector, LATAM recorded the highest drop in fares. Prices fell 38.9 percent for the company. For Gol, the reduction was 36,7 percent, and for Azul, the average fare dropped 25,5 percent in Q2 this year compared to the same quarter last year.

In the period, airlines drastically reduced the offer of domestic flights, with LATAM being the company that most decreased its offer within the country, with a reduction of 90.2 percent of domestic flights, compared to the same period in 2019. Gol and Azul reduced by 89.9 and 81.4 percent, respectively, on the same comparison.

Despite the drop, July data show a slight reaction in the airline sector, although domestic market supply is 76.3 percent lower compared to the preceding year.

There were approximately 1.6 million passengers carried in the month, a drop of 81.1 percent compared to July 2019. Aircraft occupancy in the domestic market stood at 74.1 percent – an 11 percent drop in the year-on-year comparison and seat supply declined by 76.3 percent.

In the international market, the demand for flights suffered an even greater drop of 94.5 percent.

Source: InfoMoney