According to Brazil’s tourism board, more than half the people flying into the country for the 2016 Rio Summer Olympic Games were first time visitors. But that apparently hasn’t been enough to boost the country’s airline industry and counter the country’s economic woes.
CCTV’s Paulo Cabral reports.Follow Paulo Cabral on Twitter @PCabralReporter
Brazilian airline industry growth projected to shrinkDespite a tourism boom during the Olympics, for the first time in 13 years, airline sector growth in Brazil is projected to shrink in 2016. CCTV America's Paulo Cabral reports.
For the first time in 13 years, airline sector growth is projected to shrink in 2016. That’s quite a turnaround considering that since 2003, the number of passengers transported more than tripled from 37 million to almost 118 million last year.
Data from Brazil’s Civil Aviation Agency showed carriers transported about 7.4 percent fewer passengers in the first eight months of this year than they did in 2015. That’s a drop of about 5 million seats sold.
The Brazilian Association of Airlines does not expect demand to pick up again before mid-2017: it depends on the country’s recovery. For now, it’s all about navigating the economic storm.
Despite the drop in demand, Brazilian airlines haven’t reduced their fares to attract more passengers. Market analysts say they can’t afford to do that right now.