< Reveal sidebar

Underserving Cargo Demand, Brazilian Airlines Resume Service to Some Cities

An Azul Embraer 195 lands in Porto Alegre, Brazil. (Photo: AirlineGeeks | João Machado)

The lack of passenger demand brought by the COVID-19 pandemic has created an existential threat to airlines in Brazil. Despite a delayed initial outbreak compared to some countries, the onset of the coronavirus in the country eventually led to a drop in bookings and revenue similar to that seen abroad.

To face the crisis, the country’s three major airlines — Azul Brazilian Airlines, GOL Airlines and LATAM Brasil — dramatically slashed capacity. A coordinated effort between airlines and federal and state governments has ensured an “essential air network” exists, ensuring all states and their capitals, as well as several major cities, stay connected.

At first, such a network was supposed to stay in place until the end of April. However, as the days passed and the number of COVID-19 cases got out of control, it became clear that the situation would not improve soon. As a result, the reduced network was rolled over into May.

This was not officially announced by the National Agency of Civil Aviation (ANAC), but Azul and GOL have confirmed their plans for next month’s network. Rather unexpectedly, both will resume operations in several cities throughout the country.

Azul will restart operations to nine destinations, including four in the Southern region, two in the Northeast and one each in the North, Southeast and Center-West divisions of Brazil. Already during April, the airline had added four to its planned schedule. GOL, in turn, will start services to three, all in the Southern region.

Cities where Azul and GOL will resume services in May; airports in blue had flights resumed during April. (Photo: AirlineGeeks | João Machado, created with Great Circle Mapper)

While some of these were still served by LATAM Brasil, the natural next question to ask is why airlines would restart services during a time when passenger demand is nearing zero. However, the answer may be in a service that was less harmed by the COVID-19: cargo transportation. In a press release, Azul stated these new flights will “allow the transport of important cargo, such as medications and personal protective equipment.”

According to ANAC data, in March alone, domestic passenger traffic fell 35.5 percent. Meanwhile, transported cargo fell considerably less, dropping by 17.7 percent. Although April figures should be more precise in regards to the actual extent of the crisis — it was only the second half of March that saw traffic implode — this gives a sense that cargo is underserved.

In Brazil, the number of full-freight aircraft is low, with shipment demand heavily reliant on passenger flights. This translates into an unbalanced equation under the current situation, since capacity on April was around 91 percent lower than before.

Indeed, airlines’ cargo businesses are a vital source of revenue now. Azul CFO Alex Malfitani told Brazilian business outlet Valor Económico that demand for cargo in Azul “did not fall” since the coronavirus outbreak. Airline CEO John Rodgerson mentioned to InfoMoney that cargo yields are higher now than before the pandemic, given the smaller capacity brought by the capacity cuts.

LATAM Brasil was the only major airline to not announce any resumption of destinations on its May network. However, the airline is actively deploying some of its widebodies in domestic sectors, most probably to serve the still-existent freight demand.

João Machado

Author

  • João Machado

    João has loved aviation since he was six-years-old when he started visiting his home airport in Porto Alegre, southern Brazil. As he always loved writing, in 2011, at age 10 he started his very own aviation blog. Many things have happened since then, and now he is putting all his efforts into being an airline executive in the future.

Subscribe to AirlineGeeks' Daily Check-In

Receive a daily dose of the airline industry's top stories along with market insights right in your inbox.

Related Stories

San Antonio’s First Long-Haul Flight Takes Off

The first-ever nonstop transatlantic service from San Antonio airport is taking off for Frankfurt, Germany, with flight number DE2137. Operated…

Icelandair Inaugurates Pittsburgh Service, 16th Destination in North America

Icelandair commenced non-stop operations to Pittsburgh, Pennsylvania on Thursday with a seasonal schedule operating until the end of October. The…

Emirates Resumes Lagos-Dubai Flights on October 1

Emirates announced on Thursday the resumption of daily passenger flights between Lagos, Nigeria, and Dubai starting Oct. 1, 2024. The…