Azul Airlines aims to avoid crowded markets during its South American expansion

Brazilian airline Azul has maintained a positive outlook during 2017 as the economic recovery in Brazil slowly takes off and international traffic shows signs of strength. The airline is encouraged by trends on Brazil's domestic routes, concluding that capacity adjustments have created a right-sized market. Overall, the air traffic recovery in Brazil may be slower than anticipated, but Azul's assessment is that it is moving at a steady pace.

Taking advantage of favourable international traffic trends, Azul is adding flights from Belém to Fort Lauderdale and Belo Horizonte to Orlando in Dec-2017, followed by the launch of service from Recife to Fort Lauderdale in 2018. Azul is also adding service from Recife to Córdoba and Rosario, Argentina in 2018, as it selectively adds regional routes in South America.

The airline's strategy for expansion in South America is to look for opportunities where it can attain a viable competitive position, which means Azul is not looking to expand into already crowded markets.