Market Roundup: Latam extends lead in Brazilian skies

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Latam extends lead in Brazil amid Gol crisis

Chile-based airline Latam broadened its lead in Brazil last year, according to data from the National Civil Aviation Agency (Anac). The company has led the domestic aviation segment in Latin America’s largest economy since 2021, when it overtook local rival Gol, which is now in financial trouble.

By the numbers. In 2023, 112.6 million passengers traveled by plane within, to, and from Brazil, up 15.3 percent from the previous year and the best result since 2020, when the Covid pandemic began, mainly due to the resumption of international travel and a greater supply (30 percent more than in 2022) of such flights.

However, air traffic is still far from its 2019 peak, when more than 118 million passengers traveled.
Latam’s domestic market share, defined in terms of revenue passenger kilometers, reached 37.8 percent, while Gol’s fell to 33.3 percent. Latam also leads the international market with an 18.2 percent share.

State of play. Latam emerged from its pandemic-related bankruptcy proceedings in late 2022, reducing its debt by approximately USD 3.6 billion (a 35 percent reduction from pre-filing levels), while Azul completed a broader restructuring in 2023. Gol is also struggling financially and has just filed for Chapter 11 bankruptcy protection in the U.S.

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Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.