On 1 December state-owned oil giant Petrobras raised the reference price of aviation kerosene (QAV) sold to fuel distributors by 3.8 %, or roughly R$0.13 per litre. Because distributors, airports and airlines peg their contracts to the monthly Petrobras benchmark, the increase will ripple through every carrier operating in Brazil during December–February – the country’s busiest flying period.
Fuel already accounts for 25-35 % of an airline’s cost base. Executives at LATAM Brasil, Gol and Azul have told investors that each R$0.10 shift in QAV costs can add R$450–500 million to annual expenses across their groups. With the real trading at only R$5.34 to the US dollar and domestic fare wars squeezing yields, analysts expect airlines to pass at least part of the hike on to passengers via higher base fares or temporary fuel surcharges.
![Petrobras lifts jet-fuel prices 3.8 % just as peak travel season begins]()
For corporate mobility managers and travel-management companies (TMCs) the timing could not be worse. December marks the rotation window for thousands of expatriate technicians in mining, oil & gas and agribusiness projects, while inbound leisure traffic picks up ahead of the festive season. TMCs are advising clients to lock in negotiated fares quickly, explore routings via lower-cost hubs such as Panama City or Bogotá, and monitor route profitability – especially on long domestic legs like São Paulo–Manaus.
The increase also rekindles debate over Petrobras’ pricing formula, which mirrors Brent crude and exchange-rate movements. The Lula administration is reviewing whether to grant additional tax relief on QAV following several state governments’ decisions to cap ICMS sales tax at 7 %. Industry lobby ABEAR argues that without relief, Brazil risks undermining its bid to position São Paulo as a regional hub ahead of the COP 30 climate summit in November 2025.
In the interim, multinationals should budget for higher airfare spend, update per-diem guidelines that use all-in ticket costs as a benchmark, and communicate the likelihood of surcharge fluctuations to cost-centre managers.
Fuel already accounts for 25-35 % of an airline’s cost base. Executives at LATAM Brasil, Gol and Azul have told investors that each R$0.10 shift in QAV costs can add R$450–500 million to annual expenses across their groups. With the real trading at only R$5.34 to the US dollar and domestic fare wars squeezing yields, analysts expect airlines to pass at least part of the hike on to passengers via higher base fares or temporary fuel surcharges.
For corporate mobility managers and travel-management companies (TMCs) the timing could not be worse. December marks the rotation window for thousands of expatriate technicians in mining, oil & gas and agribusiness projects, while inbound leisure traffic picks up ahead of the festive season. TMCs are advising clients to lock in negotiated fares quickly, explore routings via lower-cost hubs such as Panama City or Bogotá, and monitor route profitability – especially on long domestic legs like São Paulo–Manaus.
The increase also rekindles debate over Petrobras’ pricing formula, which mirrors Brent crude and exchange-rate movements. The Lula administration is reviewing whether to grant additional tax relief on QAV following several state governments’ decisions to cap ICMS sales tax at 7 %. Industry lobby ABEAR argues that without relief, Brazil risks undermining its bid to position São Paulo as a regional hub ahead of the COP 30 climate summit in November 2025.
In the interim, multinationals should budget for higher airfare spend, update per-diem guidelines that use all-in ticket costs as a benchmark, and communicate the likelihood of surcharge fluctuations to cost-centre managers.
