ABEAR estimates demand elasticity relative to GDP in Brazil is 1.7 for domestic and 2.3 for international flights

    ABEAR (Brazilian carriers’ association) calculated (28-Aug-2018) the demand elasticity relative to Brazil‘s GDP is 1.7 for domestic demand and 2.3 for international, meaning that raising GDP by 1% should increase domestic demand by 1.7% and 2.3% for international. Brazil’s GDP increased by 1% in 2017, but domestic demand increased by 3.2%, attributed to “Brazilian carriers’ efforts maintaining nearly unchanged the average fare per km (yield) in 2017”. [more – original PR – Portuguese]