Copa Airlines plans to increase its weekly flights in Brazil from 83 to 95 starting in January, setting a new record, according to Robert Carey, the carrier’s global vice president. The growth is driven by Panama’s strategic location, which allows Copa to connect nearly the entire continent without needing wide-body aircraft.
Despite the expansion, Mr. Carey noted that Brazil faces serious obstacles, particularly the high level of litigation against airlines. “We suffer more here than in comparable markets,” he said.
The relationship between Brazilian passengers and airlines is tense. Carriers argue that excessive lawsuits push ticket prices higher, while consumers and regulators often complain about poor service standards.
Mr. Carey also warned that ongoing tax reform could hit demand for flights. Currently, domestic tickets are taxed at 9%, but under the new system, the rate could jump to around 27%. International tickets, which today are tax-free, would also face full taxation on departures from Brazil. Regional aviation is expected to have a reduced rate, but details still need regulation.
According to the International Air Transport Association (IATA), if taxation reaches 26.5%, average domestic fares in Brazil would rise from US$130 to US$160, while international fares would climb from US$740 to US$935.
The federal government is working to expand air connectivity, especially domestically, but high fuel costs remain a major barrier. Challenges are not unique to Brazil: several Latin American carriers—including Avianca, Latam, Gol, and Azul—have undergone restructuring in recent years.
Asked whether that wave is over, Mr. Carey was cautious. “I can’t say we’re past it. This is a tough industry with a lot of competition. Sometimes airlines expand faster than they should, adding capacity even when unprofitable. That creates a difficult dynamic,” he said…
