Saturday, March 29, 2014

Brazil: Airline Business Travel Forecasted to Decline During World Cup

According to The Latin American Tribune, regional airlines expect this year’s World Cup during June 12 through July 13 to be bad for business travel.

“The world will win with the World Cup – I don’t know who will win the matches – but the airlines will lose,” said Enrique Cueto, executive vice president of LATAM Airlines Group, the result of the merger between Chile’s LAN and Brazil’s TAM.

Also taking part in the meeting were German Efromovich, chairman of Synergy Group, the holding company that controls Colombia's Avianca and Aerolineas Argentinas.
COMMENT: This will not translate into greater revenue for airlines, Cueto said, predicting that business travel--an essential money maker for airlines-- will be reduced substantially and that many routes will have fewer passengers than usual.

Another concern, Efromovich said, is that Brazil’s airports will not be able to accommodate the higher volume of flights.