Brazil: aviation market ripe for more growth and some promising signs

Brazilian aviation is a study in contrasts. With Brazil being Latin America's largest aviation market, the opportunity in the country is tremendous - trips per capita remain well below more mature markets, despite a more than doubling of passenger levels during the past decade.

That growth has occurred against a backdrop of tough operating conditions for Brazil's airlines as the structural costs of doing business in the country remain high.

But there are signs of improvement surfacing, including the country's government blocking efforts to reintroduce a free baggage requirement, and the consideration of eliminating some taxes. Those signs are fostering optimism that Brazil can reach its full passenger potential, but there remains uncertainty that recent reforms will have staying power.