LATAM Brazil to Cut July Capacity as Fuel Costs Rise

LATAM Airlines’ Brazilian unit is expected to reduce its flight capacity by around 3% in July compared to its original plans, as rising fuel costs continue to pressure airline operations. The announcement was made by LATAM Brazil CEO Jerome Cadier during the International Air Transport Association (IATA) annual general meeting held in Rio de Janeiro.

According to Cadier, the capacity adjustment mirrors a similar reduction implemented in June and could continue throughout the third quarter of the year. The airline is responding to increased operating expenses, particularly higher fuel prices, while seeking to maintain sustainable growth.

Despite the cutback, LATAM Brazil is still projected to expand its capacity by approximately 11% compared to 2025 levels. However, the growth rate will be slower than initially anticipated, reflecting the carrier’s efforts to balance expansion plans with the challenges posed by rising fuel costs.

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