The association calls on the government to lower the price of aviation fuel

Fares, taxes and fees make up 40% of an airline’s costs in Brazil; fuel accumulates a 19% drop in 2023

IATA (International Air Transport Association) has asked the Federal Government and Petrobras to review their aviation gas pricing policy this Monday (December 11, 2023). According to the group, price is one of the main challenges in the sector.

According to the association, the cost of “excessively loud” fuel used by the state-owned company, plus taxes and administrative fees, accounts for 40% of the total cost of Brazilian airlines. The share of 10% exceeds the global average of 30%.

According to Peter Cerda, Regional Vice President of IATA, aviation fuel prices are experiencing an extraordinary increase worldwide.

Aviation is a vital sector for Brazil’s economy and social development. In 2022, the sector contributed US$27.5 billion to the country’s GDP and created 1.1 million jobs. Despite this, Brazil has a very low number of flights per capita: 0.4 trips per year, which means that the average Brazilian barely makes a trip every 2 years“- said Cerda.

In Brazil, the price of aviation gas fell by 19.6% compared to the prices of 2022. In July 2022, a liter of fuel reached 6 reais. Petrobras announced a new reduction on December 1 with a decrease of 0.26 reais per liter. The price of QAV in the national territory varies from 3.92 to 4.12 reais

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