Air France-KLM Optimistic About Brazilian Market for 2025

By Gabriel Araujo

SAO PAULO (Reuters) – Air France-KLM is optimistic about the Brazilian market for 2025 after posting positive results in the country this year, executives for the European carrier in Latin America's largest economy told reporters on Tuesday.

Why It's Important

South America is the second biggest long-haul area for Air France-KLM after North America, and Brazil was a key investment destination for the company this year.

The firm now hopes to consolidate its operations in the country, where it has a commercial partnership with Gol, after an expansion in 2024 that led it to exceed its pre-pandemic frequencies.

By The Numbers

The 2024 expansion included launching flights between Paris and the coastal city of Salvador and increasing flights to Rio de Janeiro and Fortaleza, Brazil's fourth largest city and a major beach venue. The company currently operates 47 weekly flights in Brazil, up from 44 prior to the COVID-19 pandemic.

Capacity in 2024 increased by 3% on a yearly basis, while the average load factor between January and November in Brazilian routes remained at 91.6%, matching 2023's strong level, Air France-KLM reported.

Revenue levels in 2024 matched the previous year's despite stronger competition, as corporate revenues were above 2023 levels.

Macroeconomic Turbulence

Brazil's economy is experiencing turbulence, with the local currency weakening to historic lows against the U.S. dollar, increasing travel costs for locals.

Air France-KLM is monitoring foreign exchange movements but currently does not foresee any negative impact on its operations.

Key Quotes

"When you look at the forward movements, for now they are not affected. We do not see today a change in the trend of the demand for 2025," said Manuel Flahault, the carrier's South America head.

"I think there is a true belief that in the medium term Brazil will remain a very strong market to invest in. We are pretty confident that the demand will remain for 2025."