Demand for domestic flights grows 1.06% in 1st half, says Abear

SAO PAULO-the Brazilian air sector had 1, 6% on high demand for domestic flights in the first half compared with same period in 2016, said on Monday the Brazilian Association of Airlines (Abear), while offering seats fell 0,17% on the same comparison.
The half-yearly growth was driven by four consecutive monthly high, with June showing 1,96% increase in internal demand and reduction of 0,68% in the offer before same month last year.
The data lead the sector to estimate a panorama more favorable for 2017, in line with what has been seen so far.
"It is expected that the year will be positive, but it''s not going to be a spectacle," said Eduardo Sanovicz, President of Abear, during event in Sao Paulo.
PREDICTIONS
The passenger demand (RPK) for domestic flights must grow to an estimated range of about 20 the 48% of 2017 and 2022, with average annual expansion around 6% between 2018 and 2022 in the most likely scenario, showed the report "Panorama-2016 the air sector in data and analyses presented by the Association.
In 2022, the number of passengers carried in Brazil must be 117,730,000 of people in the most likely scenario. The prospects of the entity are based on projections of GDP.
RECOVERY FOR LUGGAGES
According to Abear, demand of passengers for tickets with fares that do not include the cost of luggage has been surprising. The collection of baggage shipped was adopted on 29 April, after revocation of injunction for Justice of Ceará.
"The data surprised us very positively. Around the 65% tickets sold since it was deregulated the luggage are for passengers buying the light fare, no baggage, "said Sanovicz.
The measure represents a victory of airlines in regulatory issues, something I hope to repeat in relation to the project that is being dealt with in the Senate establishing 12% ceiling for the rate of ICMS on aircraft fuel.
"Approved this project we assumed the public commitment to create 70 new flights a day, mostly headed north, Northeast and Midwest. The impact of this new volume of flights in the economy almost compensates for the decrease of the tax, "said the President of Abear.