Brazil bill regulating airline mile sales moves to Senate

The Brazilian Chamber of Deputies has approved a bill, PL 3.083/2026, that regulates the sale of airline miles and loyalty points for cash. The legislation, which now moves to the Senate, aims to provide legal security for consumers and intermediaries but has raised concerns regarding market competition and the viability of airline loyalty models.

A key provision requires that the conversion of points into cash be handled by an independent operator. To qualify, the operator must have at least seven years of market activity, no history of judicial recovery, and no ties to airlines or loyalty programs. Industry experts suggest these strict criteria may create a market reservation, as FlyBy Viagens is currently the only major operator reported to meet all requirements.

Under the proposed rules, loyalty programs that do not offer an official cash conversion option will be prohibited from restricting the sale or transfer of points by customers or penalizing them for such transactions. This could prevent airlines like Smiles, Latam Pass, and Azul Fidelidade from blocking accounts used for third-party mile trading unless they implement their own official conversion structures.