As the effects of the war in Iran linger, Brazil's already battered airlines are cutting flights to try and ride out the crisis.
Historically accounting for at least 30% of airlines' operating costs, jet fuel has doubled in price since February, with international aviation kerosene climbing from roughly USD 2 per gallon to around USD 4. Petrobras produces nearly 90% of the kerosene burned by domestic carriers and has passed on the volatility through price increases:
+9.4% in March;
+55% in April;
+18% on May 1.
The industry is bracing for more hikes at the end of the month, when a stimulus package lifting some federal taxes on jet fuel is set to expire.
You’re missing out on the full story
Get smarter on Brazil and Latin America
Enjoy 7-day free trial now!The full picture. The sharpest takes. All in your inbox, every day:
- 🏆 Award-winning journalism, trusted worldwide
- 📊 Exclusive charts and analyses
- 🗃️ Archive access
- 💬 Commenting
