Brazilian load factors at record levels as capacity continues to dip

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Domestic Brazilian load factors reached a record height in June as airlines managed to sell nearly 77% of all available seats while capacity continued to decline in a low-growth market.

According to data published by Brazil's Civil Aviation Authority ANAC, system wide load factors reached a historic peak of 76.9% and all major airlines, except Gol, reported seat occupation rates of around 80%. Overall, capacity shrank by 2.9% while traffic grew by 2.8%.

From a longer term perspective, capacity reduction was even steeper in the first half of 2013, with a 5.81% reduction in capacity than the first six months of 2012, while demand grew only by 0.09%.

In June, TAM continued to be the market leader with a 39.8% market share (down from 41% in June 2012), followed by Gol (36%, up from 33.1% partly due to the absorption of now liquidated Webjet), Azul-Trip (16.7%, up from 14.8%) and Avianca Brazil (6.9%, up from 4.97%). These monthly figures show the weakening of the traditional TAM-Gol duopoly, as Azul and Avianca Brazil continue to grow rapidly.

Internationally, TAM continues to be the undisputed leader, transporting 88.4% of the international traffic carried by Brazilian carriers, while Gol transported the rest (11.6%).

After heavy cutbacks in previous years, Gol is returning to international markets, increasing its international capacity in June by 31.7%.