By Brazil Stock Guide – Brazilian airlines swung to a consolidated net profit of 4.3 billion reais ($800 million) in 2025, as lower fuel-cost pressure and record domestic traffic helped the industry strengthen margins even as fares fell.
The figures, released in the 2025 Air Transport Yearbook by Brazil’s civil aviation regulator Anac, show the domestic market carried 101 million passengers last year, up 8.4% from 2024. It was the first time Brazil’s airline industry topped 100 million domestic passengers in a single year.
The improvement came as the weight of jet fuel in airlines’ cost structure declined. Fuel, historically the largest expense for Brazilian carriers, accounted for 29.4% of total costs in 2025, down from 30.6% a year earlier. Insurance, aircraft leasing and maintenance costs moved in the opposite direction, rising to 21.2% from 18.8%.
Consumers also saw lower prices in real terms. The average domestic fare dropped 3.3% from the previous year after inflation adjustments, while the average domestic yield — a measure of revenue charged per kilometer flown — declined 4.9%.
LATAM Airlines Group SA (LTM) remained Brazil’s largest domestic carrier by passenger volume. The company transported 39 million domestic passengers in 2025, giving it a 38.6% market share.
Gol Linhas Aéreas Inteligentes SA (GOLL54) ranked second after reversing the decline recorded in 2024. The airline carried 31.8 million passengers, equivalent to 31.4% of the domestic market. Azul SA (AZUL3) followed with 30.2 million passengers and a 30.2% share.
All three major carriers expanded passenger traffic in 2025. Gol posted the strongest gain, with domestic passengers up 13% and the number of flights rising 11%. LATAM increased passenger volume by 11.5% and expanded domestic operations by 9.1%.
Azul’s passenger count rose 3.2%, even as the airline reduced the number of flights by 2.5%. The data point to a more concentrated use of capacity and a higher average load on its domestic network.
Aircraft utilization reached 83.6%, the highest level in Anac’s historical series. The figure underscores a year in which Brazilian airlines carried more passengers per flight while preserving profitability despite lower real fares.
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