Business

The low-cost effect starts to show signs in Brazil as air tickets decrease

According to a survey from KAYAK, after Norwegian Air and Sky Airline's entry in Brazil, the average prices of a few routes have decreased

after Norwegian Air and Sky Airline's entry in Brazil, the average prices of a few routes have decreased

With the entry of low-cost airlines in Brazil, something that most consumers were probably waiting for started to show signs: airplane tickets are decreasing. While in other markets the aviation sector has already plenty of airlines, including the low-cost ones, in Brazil, this shift is only happening now: this year, in a span of three months, five low-cost airlines were already authorized to operate in the country.

This background was the one responsible for the results of a recent survey conducted by the travel metasearch engine KAYAK – which pointed out a drop of, on average, 23%, in the prices of the routes operated by the European Norwegian Air and the Chilean Sky Airline.

READ ALSO: The “semi-oligopoly” ends: Entry of low-cost airlines promises to reshape the sector in Brazil

According to the survey, passengers flying from Rio de Janeiro to London, for instance, were previously paying an average price of BRL 5.990. With the entry of Norwegian in Brazil – which operates this route –  this price dropped to BRL 4.611.

Flights connecting Latin American cities have also decreased – as the survey showed that routes between Rio de Janeiro and Chile’s capital Santiago, that once were priced at BRL 1.772 before Sky Airline starting operations in the country, after that, reached an average price of BRL 1.454. Another route affected by the arrival of Sky in Brazil was the one connecting São Paulo and Santiago, whose price went from BRL 2.245 to reach, this month, BRL 1.895 on average.

EBANX LABS
Get the best insights about Latin America market in your inbox