Have you ever noticed that Brazil has no proper low-cost carrier (LCC)? Some might say Azul Linhas Aéreas (AD) is a low-cost airline, but it really isn’t when you look at the average fare across the country (622.54 reais or US$120) versus Azul’s average fare (695.13 reais or US$133). The airline’s CEO, John Rodgerson, recently discussed why many attributes in Brazil make it very difficult for a low-cost business-oriented airline to survive.

It all starts with the fuel price

Globally, we have seen a surge in low-cost and ultra-low-cost carriers (ULCC) in the last few years. South America is no exception, with examples all over the region, from Mexico (where Volaris and Viva Aerobus dominate the market) to Argentina (where Flybondi is currently in a major expansion process). In the middle, we have new players such as Arajet (the Dominican Republic), Ultra Air (Colombia), and airlines with big plans (JetSMART and Viva Colombia, for example).

Despite this boom, there are no low-cost carriers in Brazil, even when the country has some characteristics that are key for an LCC, such as point-to-point connectivity. Nonetheless, the regulatory framework and the fuel prices heavily impact the possibility of having this business type in the South American nation.

First of all, fuel is 40% more expensive in Brazil, John Rodgerson said in the Skift Aviation Forum in a talk with WestJet Aviation Advisor Alex Cruz. Last month, the Brazilian…