Latam Brazil CEO Jerome Cadier expressed optimism that the Senate will block Bill 5.041/2025, approved by the Chamber of Deputies, which reinstates free checked baggage and imposes new commercial obligations on airlines.
In an interview with the Brazilian news broadcaster Times | CNBC, Cadier warned about the potential impacts of the measure, noting that it could raise ticket prices and create incompatibilities with international standards. He explained that making baggage inclusion mandatory in all fares would eliminate the cheapest options, leaving only the more expensive ones.
The bill also prohibits charging for standard seat selection, prevents automatic cancellation of the return leg when the outbound leg is unused without the passenger’s express authorization, and provides up to two additional free seats for passengers requiring special assistance.
Cadier stated that the package of measures was developed without adequate economic analysis or consultation with the sector and that, far from protecting consumers, it could have the opposite effect. He added that both Brazilian and foreign airlines have warned that it could lead to higher prices, reduced connectivity, and regulatory setbacks.
The report notes that after the bill was approved in the Chamber, associations such as IATA and ALTA called the proposal a “historic setback,” arguing that it would increase operational costs, move Brazil away from international best practices, and affect its competitiveness as a regional hub.
“Measures like this only add costs, reduce efficiency, and discourage connectivity,” said Peter Cerdá, IATA’s Regional Vice President for the Americas and CEO of ALTA.
For these reasons, they urged the Senate to reconsider the proposal and engage in structured dialogue with the industry.
