Will low-cost carriers actually make air travel in Brazil cheaper?

Flying low-cost is still a relatively new concept in Brazil. It was only in 2016 that regulators began loosening the mandatory services airlines must provide to their customers—such as checked luggage, in-flight snacks, or reserved seating. In 2017, the National Civil Aviation Agency (Anac) extended the possibility for companies to choose which products will be complementary and which ones customers will have to pay for.

The move attracted international low-cost companies—which have found immediate success. Chile’s Sky connects Rio de Janeiro to Santiago for USD 67 (plus USD 28 in fees) and the route has reached an 86 percent occupation rate in three months. Yesterday, Norwegian Air inaugurated its Rio-London Gatwick route for USD 239.90 (45 percent cheaper than its competitors).

Experts predict that the presence of low-cost airlines will drive prices down in general. As a matter of fact, it would increase an already existing process of decreasing airfares in the country. This move to more affordable air travel began back in 2000—when the government approved new rules to reduce interference in ticket prices from regulators. In 2016 and 2017, companies were given permission to charge for checked luggage, promising that this would lower the base fare for all passengers.