The aviation industry’s push to decarbonize its operations represents the sector’s greatest challenge over the next 25 years, according to Latam Airlines CEO Roberto Alvo. The executive also expressed optimism about the company’s prospects in Brazil, particularly with the addition of Embraer aircraft to its fleet starting next year.
The industry’s main bet to cut emissions is sustainable aviation fuel (SAF). Global production is projected to reach 1.9 billion liters in 2024, according to the International Air Transport Association (IATA)—three times more than in 2023 but still only 0.53% of total fuel demand.
“We have to look seriously at SAF. There isn’t a single drop being produced today in the [Latin American] region,” Mr. Alvo told Valor during the Latin American and Caribbean Air Transport Association (ALTA) conference in Lima. Globally, the sector has pledged to achieve net-zero CO2 emissions by 2050.
Brazil is seen as a potential leader in the field, given its expertise with ethanol. Some companies are studying the technology domestically, but none have yet begun production. Among the major players exploring the market is Petrobras, which is expected soon to offer a jet fuel partially derived from vegetable oils—a process that reduces emissions in a similar way to ethanol blending in automotive gasoline.
Energy company Vibra recently announced plans to supply SAF on the domestic market, although imported from European suppliers.
The issue is a strategic priority for Latam, which in mid-2022 pledged that 5% of its total fuel consumption will come from SAF by 2030.
Mr. Alvo said the airline is also closely monitoring Brazil’s airport infrastructure. One key concern is congestion at São Paulo’s Congonhas Airport, where renovation work next year is expected to worsen crowding.
Regarding the Brazilian market, the CEO said the outlook remains highly positive. Latam recently raised its 2025 capacity forecast to growth between 9.5% and 10.5%, up from 7% to 9% previously.
According to IATA, domestic air-travel demand in Brazil grew 12.7% in August from a year earlier—the highest monthly increase among all markets tracked by the association.
“The outlook for Brazil’s domestic market is positive. We are very pleased with the investment in Embraer aircraft, which will allow us to connect new cities where smaller jets perform better. I’m optimistic about the Brazilian market next year,” Mr. Alvo said…
