Shares in Brazil Airlines Rise as Bolsonaro Vetoes Free Checked Bags

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Jun 15. Brazilian President Jair Bolsonaro has vetoed a Congress-passed measure that would block airlines from charging for checked baggage on their flights, his office said on Wednesday, sending shares in local carriers higher.

Bolsonaro’s office said that while signing into law a bill aimed at simplifying rules for the sector as it emerges from the pandemic-related downturn, he has vetoed an amendment that would block companies from charging for bags weighing up to 23 kg in domestic flights and up to 30 kg on international routes.

Brazil’s Congress can still override Bolsonaro’s veto, but a legislative session would need to be called for that purpose.

Shares in Brazilian airlines rose after the move, with Gol Linhas Aereas Inteligentes SA (GOLL4.SA) up 4.6% at 9.99 reais and Azul SA climbing 3.3% to 14.07 reais in early morning trading.

Analysts at Genial Investimentos said Bolsonaro’s veto represented a relief for airlines amid a great amount of turbulence, adding that the measure was being priced into airline shares.

Source: Reuters

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129540cookie-checkShares in Brazil Airlines Rise as Bolsonaro Vetoes Free Checked Bags