INSUBCONTINENT EXCLUSIVE:
The Brazilian airline industry is struggling in 2024, with leading carriers Azul and Gol experiencing sharp stock price declines of 60% and
has surged by 91.85% since December 2022, and U.S
Jet fuel costs account for about 40% of their revenue, compared to 20% for U.S
carriers.Currency fluctuations exacerbate the problem, with the real depreciation against the dollar increasing aircraft leasing and other
dollar-denominated expenses.Brazilian Airlines Struggle as Global Competitors Thrive
(Photo Internet reproduction)The dollar has gained 12% against the real this year alone
interest rate is expected to end the year at 11.25%, while air travel demand lags behind pre-pandemic levels.Additional challenges include
airlines benefit from a more stable currency environment.This helps them avoid the currency-related expenses that plague their Brazilian
challenges, some analysts see the potential for recovery
kilometer and the prospect of lower interest rates offer hope
However, experts caution investors to approach the sector carefully.While the potential for significant gains exists, substantial risks
As Brazilian airlines navigate these turbulent skies, their ability to weather the storm and emerge stronger remains uncertain.Despite these
challenges, some analysts see the potential for recovery
kilometer and the prospect of lower interest rates offer glimmers of hope
However, experts caution investors to approach the sector with care.While the potential for significant gains exists, the risks remain
As Brazilian airlines navigate these turbulent skies, their ability to weather the storm and emerge stronger remains to be seen.
