TAM and GOL still share 75% of Brazilian domestic market

American Airlines added two new Brazilian destinations from its Miami hub on 22 November when it began daily Miami-Curitiba-Porto Alegre-Miami flights using 767-300s. Click here for video coverage of the aircraft’s fire truck water arch salute on arrival at Afonso Pena International Airport in Curitiba.

When anna.aero last looked at the Brazilian aviation market in July, there were worrying signs that growth in the dominant domestic market, as measured by airline RPKs (Revenue Passenger Kilometres), had ground to a halt. Five months on and the position still looks rather similar. Domestic RPKs were up in June and October, but down in July, August and September.

Brazilian domestic market Year-on-year change in domestic RPKs: 1/06 to 10/13

Source: ANAC

Analysis of Innovata / Diio Mi schedule data suggests that things may pick up again from December, with airline ASKs (Available Seat Kilometres) on domestic routes growing by between 4% and 7% for the period December 2013 to March 2014. However, an increase in available capacity does not necessarily mean that there will be an increase in demand.

Azul plus TRIP have 17% of domestic market

While TAM Airlines and GOL continue to account for around three-quarters of the domestic market (as measured by RPKs), Azul Airlines and its subsidiary TRIP now have around 17% of the market. The other major player in the domestic market (since Webjet’s demise following its acquisition by GOL in 2012) is Avianca, which has gradually increased its share of the domestic market to around 7%.

Chart: Brazilian domestic market - Domestic market share of RPKs: 1/08 to 10/13

Source: ANAC

Seat capacity up 4% in December across all airports

According to schedule data from Innovata / Diio Mi, seat capacity across Brazil’s more than 100 commercial airports is up just over 4% in December. Of Brazil’s top 12 airports, four are reporting a reduction in weekly seat capacity, with Recife down 8%, Curitiba down 3%, Rio’s Galeấo Airport down 2% and Sao Paulo Congonhas down 1%. Doing rather better are Sao Paulo Guarulhos (+17.5%), Viracopos (+16.1%) and Fortaleza (+10.0%).

International seat capacity up just 1.4% in December

Despite being the host country of next year’s FIFA World Cup, international seat capacity from Brazilian airports is currently up only 1.4% (in December) based on analysis of Innovata / Diio Mi schedule data. Most of the new international services launched during 2013 have been by non-Brazilian carriers and include Ethiopian Airlines, Etihad Airways and US Airways. In the second half of this year new international services have been launched by Aerolineas Argentinas, American Airlines, Cubana, GOL and Royal Air Maroc.

Launch date From To Airline WF (Aircraft)
10 July Sao Paulo (GRU) Havana (HAV) Cubana 1 (IL96)
1 August Brasilia (BSB) Buenos Aires (EZE) Aerolineas Argentinas 7 (E190)
22 November Porto Alegre (POA) / Curitiba (CWB) Miami (MIA) American Airlines 7 (B763)
28 November Sao Paulo (GRU) Rosario (ROS) GOL 7 (B738)
9 December Sao Paulo (GRU) Casablanca (CMN) Royal Air Maroc 3 (B763)
Source: anna.aero New Routes Database

American’s new Brazilian service, which started on 22 November, operates Miami-Curitiba-Porto Alegre-Miami, and means that Miami International Airport now serves nine destinations in Brazil, more than any other US airport. Brazil is the airport’s top international market with more than 1.6 million annual passengers, and growth is expected to continue with a tenth Brazilian route, Belem, to be served by TAM, starting in early February.


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