Brazil leads domestic aviation revenue increases

29/07/2011 - 09h23

The Brazilian domestic aviation had the highest revenue expansion deriving from tickets sales in this year's first semester, among countries pointed out by Iata (Air Transport Association).
The expansion -- a 19% increase compared to the same period in 2010 -- surpassed growths in India (17.7%), China (7.8%), Australia (4.4%) and the United States (2.5%). The domestic aviation market grew 4% in the period worldwide.

The significant increase in Brazil, said Iata, was driven by "economic growth, and also participation of classes C and D in the market, with cheaper tickets than last year's".

In 2010, the number of passengers who flew from one state to another (66 million) was almost the same as those who traveled by bus (67 million).

"Brazil's aviation market still has much to grow, as well as India's and China's, and it will keep expanding", said Respício Espírito Santo Jr., Professor in Air Transport Engineering at UFRJ (Rio de Janeiro Federal University).

"This is a country which has historically had strong internal migration. People who used to travel by bus to visit their families can pay for the plane ticket now", said the specialist. But the number of seats airlines offer in national flights did not increase as much as the number of passengers: 11.7%.

India, second in the rank of passenger hikes, had the greatest increase in airplane seats (18.9%).

The combination of strong demand for airplane tickets and seats increasing in the same ratio has already reflected on ticket prices to the most popular destinations and coveted times.
"A Curitiba - São Paulo ticket, which can cost from R$ 100 to R$ 200 in mid-week, can reach R$ 1.200 in the beginning of the week or on the weekend, at the most sought-after hours", says Rogério Dequech, Go4! managing partner.

"Despite the fact, planes are full. People pay anything because they need to get on the plane", he says.

Air tickets went up 27.38% in 12 months -- since June 2010 - according to IPCA, the country's main inflation index. It was the greatest increase in the service segment. Latin America leads the highest revenues list - 17.7%. The Iata report also highlighted China's domestic aviation performance, which, although below Brazil's, occurred after the 14.6% record increase in passengers in 2010 - a display of the Chinese market's potential.

In Japan - which also figures in the Iata report - however, there was a 21.7% shrinkage in revenues deriving from airplane tickets sales, still due to the tsunami that hit the country.

Translated by THOMAS MUELLO