IATA and ALTA warn that the new law in Brazil will affect air connectivity

The International Air Transport Association (IATA) and the Latin American and Caribbean Air Transport Association (ALTA) expressed their concern about Bill No. 5.041/2025, approved by the Chamber of Deputies of Brazil, which establishes new obligations for airlines and limits their operational flexibility.

The text mandates, among other provisions, free checked and carry-on baggage, the elimination of seat selection fees, and a ban on automatically canceling return flights when a passenger does not use the outbound leg. It also stipulates the obligation to offer up to two additional seats free of charge for passengers requiring special assistance.

According to the associations, these measures could increase operating costs and, consequently, passenger fares. Furthermore, they warn that these measures will affect competition, reduce flight frequency, and jeopardize connectivity, especially in regional and low-cost markets.

“The bill represents a setback for Brazil at a time when aviation should be driving economic growth and regional integration,” said Peter Cerdá, IATA’s regional vice president for the Americas and executive director of ALTA.

Currently, aviation in Brazil generates more than 1.9 million jobs and contributes US$46.4 billion to GDP, equivalent to 2.1% of the national economy. So far in 2025, air traffic has registered an increase of 9.2% in domestic flights and 17.7% in international flights, demonstrating the sector's sustained recovery.

IATA and ALTA urged the Federal Senate to review the bill before its enactment and to open a dialogue with the industry, in order to protect consumers without compromising the economic sustainability or competitiveness of air transport.

Source: IATA/ALTA statement