With prices on the rise for domestic and international flights, the alternative for Brazilians is to postpone travel or seek out previously rarely visited destinations. According to the most recent data collected by the National Civil Aviation Agency (ANAC), the average rate for 2022, considering the national destinationsis 483.17 reais, an increase of 20.1% compared to the beginning of last year, but in practice it is difficult to find flights in this price range. For North American countries, the average ticket for the first quarter of 2022 was US $ 1,064.09 (up about 9% compared to 2021), while journeys to European countries recorded an average ticket of US $ 1,033.63 in the first three months of this year (an increase of 24%). The readjustment for Asian countries was also high, with tariffs of $ 2,145.58 (20.3% increase) on average. As this week’s VEJA report showsAs companies try to organize for market recovery as the Covid-19 health crisis eases, passengers are paying more to travel.
The price of the real against the dollar discourages travel abroad, while the high interest rate depresses the demand for the purchase of credit and installment tickets. Furthermore, the increase in the average price of a barrel of oil (source for jet fuel) is a direct factor in the increase in air fares and inflation pressures in Brazil. For the economist Value Investimentos, Piter Carvalho, the instability of ticket prices makes domestic destinations even more expensive when buying with certain international routes. “A lot of people are seeing big promotions and it really makes more sense, for example, to go to Portugal than to go to Fernando de Noronha,” he says. A return ticket to Fernando de Noronha from November 10-15, for example, costs 4,627 reais per adult (less). As for Lisbon, the passenger spends 4,039 reais in the same period, according to a research conducted by the report on the site. sky scanner.
The pricing of airline tickets is carried out by the same companies, on the basis of the tariff freedom regime for the sector, established by the Federal Government in 2001 and sanctioned by Law no. 11.182 / 2005. THE Anac has the function of continuously monitoring the rates already sold. The fluctuation is linked, in part, to competition in the sector and to factors such as contractual conditions, advance purchase, airport of origin and destination, promotional actions. However, the greatest price sensitivity is with macroeconomic factors, which drive the level of supply and demand.
When the dollar and euro are higher, not only are tickets expensive; procedures such as issuing or updating a visa are also more expensive. The solution is to delay any international travel to the following year or next vacation or search for destinations in Brazil. However, as the demand for domestic destinations increases, the price follows the increase. “When there is a high demand for travel, in the case of domestic destinations, especially now around the holidays, airlines raise their prices to seek greater profit. I am able to map this question very well, “says Carvalho. IL the average price paid per kilometer traveled (yield) in 2022, considering only domestic destinations, was 0.3741 reais, according to the latest Anac data, up by 22.3% compared to the first quarter of last year.
new destinations
For the flight director of Declar, Daniela Araujo, the repressed demand in the last two years of the pandemic and the July holidays (the first school holidays in the context of greater flexibility in health regulations), increase demand. Despite the rise in fares, the online travel agency closed April with 51% higher demand than March, considering July holiday tickets. “Brazil is a very rich country in terms of tourism and what we are seeing now are new destinations, for example Chapadas. In South America we see (high demand) already coveted destinations (Bariloche and Santiago, for example), but also new places, such as Salta in Argentina, which was not sought after by Brazilians, ”he observes.
To keep up with demand, airlines are also adapting, especially with new forms of payment, subsequent promotions and greater flexibility for the consumer. “For some months now we have seen an increase in the search for flexible rates, which allow, for example, to cancel or change the date of one’s tickets. And I believe that this is a model that must not go back, the aviation sector has understood that it is possible to be prepared for change “, he believes Araújo. Other movements observed by the executive are the increase in the installment payment for travel and packages, the installment payment (without using the card) and the advance purchase of tickets. “The maxim in the tourism industry is: if you want to pay less, plan your trip in advance,” he points out.
The president of the Brazilian Association of Airlines (Abear), Eduardo Sanovicz, stressed in a statement that airlines are facing the high price of aviation kerosene (QAV) “every day”. The barrel of oil is touching $ 100 these days, especially with the impact of the war in Ukraine (sanctions on Russian oil / decrease in supply). However, since the pre-pandemic period, the airline sector has been rising in prices, according to Abear’s assessment. “The expectation of the sector in 2017 was to maintain the decline in the value of tariffs that had occurred since 2003, but the high exchange rate (60%) and kerosene (209%) from 2017 to today have reversed this movement” , he points out.
According to Latam, between January 1 and May 1, the SAQ increase reached nearly 50% in Brazil. The airline also expects a further increase in aviation kerosene over the next few months and will further impact ticket prices as a result. The Economist Piter Carvalho argues that the fare collection of checked baggage can also affect ticket prices. “Unfortunately, that amount that the companies were counting, mainly for this year’s budget (fare revenue), will be transferred indirectly, diluting in the price of tickets. There is no free lunch. “For Carvalho, the key point is the operating cost of airlines.” Company margins are under a lot of pressure. If the cost of travel is 10, the fare will automatically be 12, for example. it’s just about increasing the profit (of companies), it’s that the cost has gone up, ”he says.