With the rise in the price of QAV (aviation kerosene), around 121 flights are being canceled daily in Brazil, according to the president of Abear (Brazilian Association of Airlines), Juliano Noman.
According to the entity, the increase in the cost of fuel has put strong pressure on companies’ operations, especially on regional routes with lower demand. The North and Northeast regions are among those most affected by cuts in the airline network.
Federal deputy Claudio Cajado (PP-BA) stated that the sector has already accumulated around 3,500 flight cancellations in May. According to him, approximately 2,600 cancellations are still expected in June.
QAV is one of the main components of airline costs and currently represents 46% of the sector’s operating expenses. Although the fuel is mainly produced in the country, the price policy for aviation kerosene is linked to international prices, which is why the increase was greater than expected by the sector.
The discussion occurs amid measures by the federal government to try to alleviate financial pressure on airlines. Last week, the CMN (National Monetary Council) approved an emergency line of credit of up to R$1 billion for working capital for companies in the sector.
