Companies. airlines discuss sector challenges and sustainable fuel potential in Rio

In the midst of a challenging time, in which uncertainties about a peace agreement between the United States and Iran are keeping fuel prices high, especially aviation, and with airlines around the world on alert, the International Air Transport Association (IATA) is holding its 82nd annual meeting in Rio de Janeiro between today (6) and Monday (8).

During the three days, topics such as sustainability, trade and tariffs, psychology and passenger rights and the advancement of AI in the sector will be discussed. At a time when dependence on a single fuel source has been re-discussed, one of the panels will debate how to reduce the gap between the production potential in Brazil of SAF – sustainable aviation fuel – and the needs of the airline industry.

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Companies. airlines discuss sector challenges and sustainable fuel potential in Rio

The last annual general meeting held in South America took place in 1999, also in Rio de Janeiro. This marked the introduction of the World Air Transport Summit format, recognizing the IATA Annual General Assembly as the industry’s premier platform for high-level debate on critical aviation-related issues.

Impacts of the war

The impact of the conflict in the Middle East has hampered the overall performance of passenger and freight transport in recent months. In April, total demand, measured in kilometers paid per passenger, fell 3.4% compared to the same month in 2025. The association highlighted that this was the first drop in demand in a year-on-year comparison since the pandemic.

To measure the impact of the war, when excluding data from the Middle East, demand increased by 1.2%.

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Total capacity, measured in available seat kilometers (ASK), fell 2.9% compared to the previous year. The load factor was 83.1% (-0.4 percentage points compared to April 2025).

“The 46.6% drop in demand for airlines in the Middle East due to the war in the region was so sharp that it dragged overall demand down -3.4%. The air transport situation remains highly volatile. The cost of jet fuel more than doubled in April, which is driving up air fares,” commented Willie Walsh, Director General of IATA.

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Meanwhile, demand for air cargo grew 4% year-on-year in April, driven by strong trade flows linked to Asia. But positive news also masks a more complex operating environment: Severe disruption in key Gulf hubs due to war has continued to reshape trade routes and constrain capacity in key corridors.

Dedicated freighters carrying much of the growth, air freight transport returns to keep supply chains moving amid trade disruptions. The coming months will test how much the sector can absorb continued geopolitical uncertainty and high operational costs”, commented the IATA Director General.

This year, LATAM Airlines Group is the airline hosting the event, in which around 1,500 industry leaders and government authorities are expected to participate.

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Regarding Brazil, Walsh highlighted that the sector is undergoing rapid modernization in the country and already supports 2.1% of the country’s GDP. “With rich tourism resources, huge SAF production potential and growing exports, the potential to further strengthen Brazil’s air connectivity is a winning proposition for people, jobs, trade and the wider economy. We will highlight policies and changes needed to transform Brazil’s potential into reality as part of a program that addresses aviation’s most pressing global issues,” he said.

The journalist traveled at the invitation of IATA.

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