From January to July 2015, Brazil's local civil aviation agency announced that the companies carried a total of 56.5 million domestic passengersThis represents an increase of just 3.6 % compared with the same period in 2014. This is leading Brazilian carriers to make capacity adjustments domestic routes. In August, for example, TAM, part of the LATAM Airlines group, reduced its local offer from 8 % to 10 %. Its competitor GOL, which has Delta Air Lines as a shareholder, also announced a reduction in the number of flights. Similarly, Azul, another domestic carrier, has reduced its capacity by 10 %, following a 35 % increase in capacity in 2014.
However, air travel remains the most popular means of transport in Brazil. 63.5 % of travellers in this market took to the skies in the first quarter of 2015, compared with 62 % over the same period in 2014. On the other hand, things are going rather well for international lines. Compared with 2014, Brazilian carriers recorded a growth of 15.9 1Q3 in passenger numbers over the period January to July 2015. TAM is expanding its global network accordingly. In July, the airline opened four flights a week on the Brasilia-Buenos Aires route and increased its capacity on the Madrid-Sao Paulo route by bringing a Boeing 777 into service.
Alliances are also strengthening in this buoyant market. While Avianca Brazil has become Star Alliance's new Brazilian partner following TAM's departure for Oneworld, United Airlines and Azul Brazilian Airlines have formed a strategic partnership, with the US carrier taking a 5 % stake in Azul.
