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Latin Times
Latin Times
Business
Azucena Salazar

Brazil's 2027 Airfare Crunch: What a 25% Price Spike Means for Latin American Travelers

Brazil IATA Flávio Bolsonaro Luiz Inácio Lula da Silva CBS Aviation Brasília
A plane of airline Latam flies over Guanabara Bay before landing at Santos Dumont Airport in Rio de Janeiro, Brazil, on January 22, 2026. (Credit: Photo by Pablo PORCIUNCULA / AFP via Getty Images)

The Briefing

  • Brazil's pending tax reform would push the effective VAT on airfares from roughly 9% to 26.5%, with IATA projecting domestic tickets up at least 16.1% and international fares up at least 13.3%.
  • Airlines face a December 31 deadline for three key government relief measures before the CBS rate formally activates in January 2027; without action, the sector's annual tax bill could surge from R$4.8 billion to R$17.8 billion.
  • A presidential election runoff on October 25 has injected new uncertainty: opposition frontrunner Flávio Bolsonaro has pledged to revise the reform, while incumbent President Lula championed it throughout its passage.
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