Aviation
Commercial /
Brazil
Hard times
Brazilian airlines suffer from high fuel prices during a pandemic
Airbus A330-900
CC BY S.A 4.0, via wikimedia commons
Rafael Ramos
7/24/2021
The pandemic has affected the aviation sector in Brazil with great force, and continues to show its negative effects. For comparison purposes, the main Brazilian airlines, Gol, Latam and Azul, still experience reduced levels of flight offer when compared to the period before the pandemic. Demand for domestic flights dropped 32.5% and seat supply fell 27.1%.
In addition to this difficulty, aviation fuel costs (QAV) increased by 2.2% and the dollar rose by 22.8%. Fuel costs represented a 25.7% share of the total operating cost, making this the highest cost in the industry.
Ken Yam/Unsplah
The impact of these problems on aviation was the 53.5% drop in revenue compared to the first quarter of 2020. On the other hand, operating costs and expenses fell 33.8%.
As the cargo sector continued to grow during the pandemic, it increased 6.1%, representing 10.8% of total revenue. The revenue obtained from the sale of tickets was 57.6% lower, representing 76% of the total.
The sector's net result was –6 billion reais in the first quarter of 2021, with a net margin of –119.2%. In the same period of 2020, the numbers were –9.6 billion reais and –90.9%, respectively.
Gross margin and EBIT margin also worsened, being -17.4% and -35.4% in 2021 against -10.3% and -1% in 2020.
The information in this text is from Anac.
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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