Rising fuel costs and currency fluctuations are looming challenges for Brazilian airlines, but two of the country"™s largest airlines feel reasonably confident that they can weather those difficulties "“ in part, due to stable demand in the country.
That demand and prudent capacity management should allow Brazilian airlines to drive revenue in order to offset some of the cost pressure from increased fuel cost and the currency fluctuations of the BRL.
Of the country"™s three largest airlines, Azul is planning the largest domestic capacity increase in 2018; however most of its network is uncontested, and the airline believes demand will hold steady in 2H2018.
Brazil"™s first and third largest airlines GOL and Azul post double digit gains in average fares in 1Q2018.
The country"™s three largest airlines appear to be plotting reasonable capacity growth in 2018, and GOL has slightly trimmed its forecast.
Azul and GOL feel reasonably confident that solid demand in Brazil"™s domestic market will remain intact during 2H2018, offering an opportunity to increase fares as defence against rising fuel cost and currency pressure…
