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Economic decline creates headwinds for Brazil's domestic airlines

Analysis

It has been an eventful 2019 for Brazil's aviation market since Avianca Brasil ceased operations and Brazil's largest airlines began jostling for some of the defunct airline's more attractive assets.

Azul joined other airlines in working to obtain Avianca Brasil's slots (particularly at São Paulo Congonhas airport) and now, armed with new slots, the airline is launching flights on the key Rio de Janeiro business route. Its service on the route will pale in comparison to those of GOL and LATAM Airlines Brazil, but breaking into that market is key for Azul's domestic evolution.

As the shakeout in Brazil's domestic market after Avianca Brasil's exit continues, Brazil's economy is facing some headwinds after its growth forecast for 2019 has been cut, and general overall recession concerns are rising for countries worldwide.

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