[REVISION HISTORY]

Brazil aviation fuel price changes

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-20 18:01 UTC → 2026-08-29 01:42 UTC · added ~~removed~~

In late July 2026, Brazil’s aviation kerosene (QAV) price had risen sharply, reaching R$ 5.66 per litre – a 57.6% increase over the previous year and a 34.1% jump from June 2024. While fuel accounts for roughly one-third of airline operating costs, domestic ticket prices showed limited pass-through, rising only 0.3% to R$ 660.50 in June. On 1 August, Petrobras activated a temporary volatility-protection mechanism that lowered the average natural-gas price for distributors by 0.9% while again raising the QAV price by 1.9% (R$ 0.09 per litre). The scheme ties gas pricing to Brent and Henry Hub benchmarks—Brent up roughly 23.3%, Henry Hub down 15.4% and the exchange rate up 4.0%—and prevents an estimated 11.8% quarterly increase that would have occurred without it. The government continues reviewing an extension of the temporary PIS/Pasep and Cofins tax exemption on QAV through year-end. Since the February 28 outbreak of the Middle-East conflict, QAV prices have surged about 49% to a peak of R$ 8.48 per litre in early 2026. The three largest carriers—Azul, Gol and LATAM—face roughly R$ 5.2 billion in extra fuel costs, pushing fuel’s share of operating expenses from 32% to 39% and coinciding with a 62.6% drop in QAV volumes in the first five months. To mitigate the impact, Brazil’s development bank BNDES announced a R$ 13.2 billion credit line, including R$ 8 billion for working-capital financing. By July, despite rising fuel costs, inflation-adjusted domestic airfares decreased by 5.2% compared to July 2025, with Azul seeing an 18.5% drop and LATAM a 3.4% decrease, while Gol prices rose by 2.5%. In response to ongoing pressures, the Government of Rio de Janeiro has submitted a bill to the State Legislative Assembly (Alerj) to restore tax deferral on QAV.

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