Azul leads Brazil’s domestic airline market sector for third month in a row

RIO DE JANEIRO, BRAZIL – Demand for air transportation in the Brazilian domestic market (measured in revenue per passenger kilometer, or RPK) showed a 43.4% decline in May this year compared to the same period in 2019, when the pandemic had not yet affected the sector. Supply showed a 43.7% decrease on the same basis of comparison.

The data, released by the National Civil Aviation Agency (Anac), signal an improvement after the peak of Covid-19 this year, which caused the sector’s demand to fall 61% in April compared to the same month in 2019.

The month had 3.63 million passengers, down 49% compared to May 2019. The aircraft load factor was 82.2%, up 0.6%, with companies adjusting supply better in light of the difficult period.

Anac’s figures show Azul leading the domestic market for the third consecutive month (March to May) with a 36.6% share, followed by Latam with 32.2% and Gol with 30.7%. Azul is taking an increasingly aggressive stance in offering flights in Brazil. The airline operates on 70% of its routes without competition, which ultimately supports the price of tickets.

In the international market, indicators continue to decline sharply, taking into account factors such as border closures and travel restrictions. Passenger demand in the fifth month of the year was 88% lower than that of 2019, and the decline in supply was 66.2%.

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