Azul Linhas Aéreas, GOL Linhas Aéreas, and LATAM had a difficult first half of the year, fueled by a complex quarter for the Brazilian airlines due to rising costs, currency volatility, and economic uncertainty. Nonetheless, they also found hope in the strong domestic recovery and the seemingly returning business traveler.
The quarterly and half results
The three main Brazilian airlines have posted their financial results. Between them, they had a US$1.4 billion net loss in the first half of the year; only Azul had a net profit, a minimal US$6 million. Quick disclaimer: in this total, we are taking into account the net loss of the whole LATAM Airlines Group company (US$905 million), including its subsidiaries in other South American countries such as Chile, Colombia, Ecuador, and Peru.
The three airlines were deeply impacted by rising fuel costs, which, according to GOL’s Chief Financial Officer, Richard Lark, increased 81% over the same period. These expenses increase led the overall Brazilian airline industry to have net losses in the first half of the year, despite demand recovering throughout the country. On a continental level, we see the same for other countries and carriers (check out our article on the collective losses by Mexican airlines here
).
Azul Linhas Aéreas, GOL Linhas Aéreas, and LATAM had a difficult first half of the year, fueled by a complex quarter for the Brazilian airlines due to rising costs, currency volatility, and economic uncertainty. Nonetheless, they also found hope in the strong domestic recovery and the seemingly returning business traveler.
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