Brazil Cuts More Than 6,200 Flights After Aviation Fuel Shock

Brazil’s airlines have removed more than 6,200 flights from their schedules for May and June after a sharp increase in aviation kerosene, according to data from Brazil’s National Civil Aviation Agency (Anac) reported by Folha de S.Paulo.

The cutback reflects one of the clearest domestic effects of higher oil prices tied to conflict in the Middle East. Aviation fuel is one of the largest costs for Brazilian carriers, and industry representatives say the price shock has forced companies to reduce less profitable routes before passing the full cost to passengers.

The Scale of the Cuts

Folha reported that airlines cut 3,596 flights in May and were expected to remove another 2,675 in June, compared with schedules at the end of February, before the latest surge in international oil prices. An earlier presentation to Brazil’s Chamber of Deputies had put the May figure at more than 3,500 cancellations and the June forecast at about 2,600.

Pernambuco, in Brazil’s northeast, had the sharpest percentage reduction in May, with scheduled flights down 12.8%, or 427 operations. Bahia, Goiás, Espírito Santo and Rio de Janeiro also recorded large percentage declines. In absolute numbers, São Paulo lost 844 flights in May, followed by Rio de Janeiro with 514.

Gol made the largest reductions, cutting 1,840 flights in May and 1,201 in June, according to Folha. Azul removed 1,243 flights in May and 973 in June. Latam made smaller adjustments, with 498 fewer flights in May and 537 in June. Gol and Azul together accounted for more than 86% of the reported reduction.

Fuel Costs Drive the Crisis

Brazilian aviation kerosene rose from about R$3.30 to R$3.35 per liter in mid-February to R$6.65 per liter in early May, according to figures cited by Folha, Agência Brasil and industry group Abear. That means the fuel nearly doubled in less than three months.

Abear, which represents Brazil’s major airlines, says jet fuel now accounts for about 45% of sector operating costs. Melhores Destinos, citing the association, reported a slightly higher estimate of 46%, up from about 32% before the shock.

“We are reducing supply and the size of aircraft so as not to stop serving destinations,” Abear president Juliano Norman said, according to Agência Brasil and Melhores Destinos. “But the worst face of the crisis is when a destination stops being served or when the industry returns an aircraft to the manufacturer, because recovery is not so simple.”

Anac officials told lawmakers on May 21 that no Brazilian destination had yet lost air service completely and that there was no current risk of fuel shortages. The agency did acknowledge reductions in regional routes, especially in the North and Northeast.

Government Relief and Petrobras Cut

Petrobras said on June 1 that it would reduce its average aviation kerosene price to distributors by 14.2%, or R$0.93 per liter, after successive increases since March. The state-controlled oil company said the cut reflected an easing of international price pressure linked to Middle East tensions.

Even after the reduction, Petrobras said aviation fuel prices were still up 54.5% in 2026 compared with December 2025, an increase of R$1.98 per liter. The company adjusts aviation kerosene prices at the start of each month under supply contracts.

The federal government has extended tax relief on aviation kerosene and biodiesel until July 31. The decree keeps a 99.99% reduction in PIS/Pasep and Cofins federal social taxes on aviation kerosene and a full tax cut on biodiesel, according to Agência Brasil.

Officials have also discussed emergency credit for airlines. Folha reported that President Luiz Inácio Lula da Silva’s government planned a short-term loan of up to R$1 billion, roughly USD 198 million at recent exchange rates, to help carriers with working capital. A broader support package through Brazil’s National Civil Aviation Fund is expected to release about R$4 billion, roughly USD 793 million, in credit under a more conventional risk-assessment model.

For passengers, the impact is already visible. Folha cited Anac data showing airfares in March were 17.8% higher than a year earlier and 14.5% above February. Industry sources cited by Melhores Destinos warned of fare increases of up to 30% in the coming months if fuel costs remain elevated.