Promise to tame Brazil’s skyrocketing airfares fails to impress

The Brazilian government launched on Monday the first stage of a plan aimed at reducing the cost of flying in Brazil — as airfares continue to climb way above the official inflation rate.

In an announcement made with Brazil’s three top airlines (which have a combined 99 percent share in the domestic air travel market), the Ports and Airports Ministry promised that consumers would have more promotional tickets at their disposal — provided they purchase them at least 14 days ahead of their travel dates.

By January, the government is expected to provide subsidized airfares to passengers on welfare and low-income college students.

A look at the numbers, however, may leave passengers disappointed. Azul and Gol, which combine for 64 percent of the domestic market, announced they will cap airfares on 25 million tickets at BRL 799 and 699 (USD 162 and 142). 

The cap is on par with — and in Azul’s case, above — the average ticket price they are already selling, as per data from the National Civil Aviation Agency (Anac).

Meanwhile, market leader Latam said it will, every week, pick a destination to which tickets will be sold at prices no greater than BRL 199, without specifying how many. CEO Jerome Cadier added that frequent flyer...