Latin American and Caribbean Air Transport Association says that the Brazilian domestic market grew 12.7% in August, but warns of the risk of new regulations and taxes
Brazil was the fastest growing domestic market in the world in August, with an increase of 12.7% compared to the previous year, according to data presented this Sunday (October 19, 2025) during the General Assembly and Leaders Forum of the (Latin American and Caribbean Air Transport Association), in Lima (Peru).
The result was classified by the entity as a “very positive news”, but the sector warns that new regulations and taxes could compromise the advancement of aviation in the country and the region.
“When we are constantly threatened by litigation, new regulations without coordination with the sector or, for example, the application of VAT (Value Added Tax) to the airline sector, the impact can be devastating”said, CEO of Alta and vice president of the (International Air Transport Association) for the Americas.
According to him, the tax increase could increase tariffs by up to 30%.
“It is estimated that monthly rates could rise from US$ 130 to US$ 160 and, in the international market, from US$ 740 to US$ 935. . It is a worrying setback, precisely when the Brazilian domestic market is a global highlight”he told journalists.
Asked about the factors that explain the growth, Cerdá stated that it was the “industry commitment”. However, he warned that “excessive regulations” end up generating the opposite effect to that intended.
“When many of these consumer protection laws are imposed, the result tends to be increased fares, fewer people able to travel, a negative impact on connectivity and, in many cases, a reduction in flights or air services to certain communities”these.
According to him, in Brazil there is a lack of transparency and dialogue with the sector.
“When governments propose laws in Congress, we ask them to talk to the industry, to evaluate the scenarios and reasons behind the measures. Unfortunately, many of these decisions are taken unilaterally, without any consultation with the sector”he stated.
president of the Alta Executive Committee and CEO of the Group . he added that the Brazilian numbers are significant, but could be even better with more consistent public policies.
“When growth figures are given, the correct question is: how much more could we grow if policies were better? This shows the potential we have”these.
According to Alvo, domestic transport in Brazil is already above 2019 levels, which reinforces the recovery of the sector.
“Domestic transport in Brazil has had an important recovery, as in other countries, and is already above 2019 levels”he stated.
Reporter Caio Barcellos traveled at Alta’s invitation.
